L&T Infotech to offer jobs to 4,500 freshers in FY22 amid high attrition
PremiumL&T Infotech CEO Sanjay Jalona further said most of the new hiring will be done in markets with more need for talent or the ones that have seen more attrition
Larsen & Toubro Infotech (LTI), the multinational tech consulting and digital solutions subsidiary of Larsen & Toubro, is planning to hire 4,500 freshers during the current financial year to stem high attrition rate. The IT major had hired 3,000 freshers last fiscal.
“We've plans to hire 4,500 freshers this year and we remain upbeat about our career upskilling proposition," Sanjay Jalona, Chief Executive Officer and Managing Director of LTI, told PTI on Thursday.
As of the June quarter, the Mumbai-based company has a workforce of 38,300 employees. Of them, as much as 78 per cent are deployed at the firm's offshore centres. A good portion of the new talent will be locally-sourced from key overseas markets.
The attrition rate at LTI has dropped from 18.3 per cent in Q1 of FY21 to 15.2 per cent in Q1 of FY22 as it increased its net hiring from 4 per cent to 6 per cent during June quarter, Jalona said. On a sequential basis, it has gone up from 12.3 per cent in the March quarter, he added.
Compared to this, market leader TCS has the lowest attrition rate at 8.6 per cent in Q1 of this fiscal, up from 7.2 per cent in March quarter. Infosys has the second-lowest attrition rate at 13.9 per cent, up from 10.9 per cent in March.
Wipro recorded 15.5 per cent attrition rate in June, up from 12 per cent in March. The US-based Cognizant, which has two-thirds of its employees placed in India, had a substantially high attrition rate of 31 per cent for the June quarter.
"We added 2,000 people in the March quarter and 2,300 in the June quarter. As against this, the whole of FY21 saw only 3,000 net additions," Jalona said.
The LTI CEO further said most of the new hiring will be done in markets with more need for talent or the ones that have seen more attrition.
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Last month, LTI had reported its best-ever first-quarter numbers with a net income of ₹496.3 crore, up 19.13 per cent on-year, but down 9 per cent on-quarter. Revenue grew 17.4 per cent on-year to ₹3,462.5 crore and 5.91 per cent sequentially.
Its revenue over the past five years, in dollar terms has grown at an annualised rate of 13.5 per cent, while the net income more than doubled during this period.
Jalona attributed the good June quarter financial performance to the several big-ticket deal wins in the Middle East, Europe and North America. On emerging trends in the digital space, he asserted that cloud and all data-related segments are the hottest opportunities because these technologies help customers deal with the new normal.
"Anybody who was on-premise, had struggled to take their employees remote, that's where these technologies came into play and data is ingrained in everything now. We are seeing tremendous opportunities in cloud as it is on steroids now. Cloud is not only about moving from on-premise to a cloud infrastructure, it's a totally different way of doing businesses," Jalona argued.
Stating that the ongoing accelerated demand for digital adoption is the best-ever in a decade, Jalona said he is excited about cloud and data opportunities which will be the main drivers of technology and business transformation in the coming years.
Another rapidly growing trend is the discretionary spend on projects with shorter deal cycles, he said, adding that such projects are being executed through offshore-based agile pods delivery model.
LTI acquired Pune-based digital engineering services firm Cuelogic in June quarter, its seventh acquisition since listing five years ago. The deal gives it an opportunity to tap digital engineering requirements of businesses.
On LTI's accelerated hiring plans, Apurva Prasad of HDFC Securities said the plan addresses the talent supply-side crunch it has been facing for long now. This, clubbed with the scaling-up in products through Mosaic and Leni and partnerships with Snowflake makes LTI a good prospect from a long-term investment perspective, he added.
Manik Taneja of JM Financial too is optimistic on the attrition side saying the entire domestic IT industry is facing a battle like situation on talent front. But as long it is continues to grow faster than the industry and innovate in exponential technologies, we are confident that will be able to attract the right talent.
(With PTI inputs)
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