Infosys to hire 20,000 graduates while TCS trims 2% workforce
What's the story
Infosys is set to ramp up its hiring this fiscal year, CEO Salil Parekh told Moneycontrol. The company added 17,000 employees in Q1 and plans to recruit another 20,000 fresh graduates by the end of the financial year. This aggressive hiring strategy comes as a stark contrast to rival Tata Consultancy Services (TCS), which recently announced a 2% workforce reduction due to a gap in skilling and technology shift.
Growth focus
Strong utilization rates and AI investments drive hiring push
Parekh said Infosys's strong utilization rates and strategic investments in artificial intelligence (AI) position the firm for continued expansion. He noted that clients are accelerating their digital transformation initiatives, creating a demand for skilled professionals. "We see a continued focus on growth, a good level of utilization," Parekh said. He emphasized the importance of reskilling in AI as part of their hiring strategy.
Market contrast
Infosys CEO's response amid TCS's layoffs
Parekh was asked about his views on the middle management flab, to which he responded, "We have a very strong team, very good utilization level and approach." This statement comes as a direct contrast to TCS's decision to cut 12,000 jobs globally in one of the largest layoffs in Indian corporate history. The job cuts primarily target middle and senior layers of the organization.
Financial forecast
Full-year revenue growth guidance revised for FY26
Infosys has revised its full-year revenue growth guidance for FY26, raising the lower end to 1-3% growth in constant currency (CC). The company had earlier set a 0-3% growth guidance for FY26 in the previous quarter. Parekh said he is seeing a lot of interest in fundamental blocks like cloud and data as companies start spending on large technology programs.
Profit increase
Strong Q1 results beat street expectations
Infosys recently reported an 8.7% year-on-year (YoY) increase in consolidated net profit to ₹6,921 crore for the quarter. The company's revenue also grew by 7.5% to ₹42,279 crore, beating street expectations. Parekh said it's "critical to invest" in newer technologies and focused on "internal efficiency" to achieve targets without major disruptions. He believes that Infosys's growth will be stronger once global issues, especially in the US and Europe, stabilize.