Human Resource Community

SAP Labs India has unveiled plans for a new office in Pune, with the goal of generating employment opportunities for 300 individuals. This office will be located in Pune’s Kharadi area. SAP’s presence in India began with a modest team of 150 employees in Bengaluru, but it has rapidly expanded, leading to increased job prospects. The company is also actively constructing a new facility in Bengaluru, designed to accommodate up to 15,000 employees. The groundbreaking ceremony for this upcoming campus took place on May 29, 2023, near Bengaluru Airport in Devanahalli. In 2023, SAP Labs India is celebrating its 25th year in India and is committed to bolstering job opportunities. The company has recently announced its intention to double its workforce in the field of artificial intelligence (AI) by 2024. Notably, about 40% of SAP’s global workforce is based in India, and SAP Labs India is responsible for 25% of all SAP patents, underscoring the significant role India plays in pioneering research and development for the organization. Nearly 60% of SAP’s workforce in India is dedicated to AI-related projects, underscoring the company’s commitment to job creation in this dynamic field.

Accenture, a prominent IT consulting firm, has informed its employees in India and Sri Lanka that there will be no salary increases for the fiscal year 2023 due to challenging macroeconomic conditions. In an email from the country’s managing director, Ajay Vij, it was stated that employees may still receive individual annual performance bonuses, although these bonuses will be significantly lower than in previous years, reflecting the company’s underperformance. This decision coincides with broader industry challenges, including macroeconomic headwinds and reduced client spending. Vij explained in the email, “As outlined in our FY23 results, we faced a more difficult macroeconomic environment than expected at the start of the fiscal year, resulting in lower growth and necessitating tough choices regarding promotions and rewards.” Additionally, promotions for senior management roles will be postponed until June 2024. Vij further clarified, “Considering our performance context, we will not be granting base pay increases this year, except where legally required or in select critical skill areas.” While Accenture provided a sales growth guidance of 2-5% for FY24, the company reported a 16% year-on-year decline in net income for the quarter ending in August. This decision aligns with the challenges faced by major players in the Indian IT industry, who have cited an uncertain demand environment. Promotions are scheduled to be awarded in December, up to Level 5 employees, although they will be less generous compared to the previous year. Accenture, estimated to employ over 300,000 people in these countries, follows a rewards philosophy that considers market-relevant pay based on skills and geographic locations, taking into account various factors, including the macroeconomic landscape, when making compensation and benefits decisions, according to a spokesperson responding to ET queries.

Tata Consultancy Services (TCS) has reported a decrease in its employee headcount by 6,333 during the second quarter (Q2) of FY24, resulting in a total headcount of 608,985. Furthermore, compared to the same period last year, there has been a reduction of 7,186 employees. In the first quarter (Q1), India’s largest IT company had only added approximately 523 employees. This trend is reflective of the challenges faced by IT firms due to macroeconomic factors and clients’ cautious technology spending. Accenture, a global IT leader, also reported modest headcount growth of 951 employees in their fourth quarter while projecting a subdued 2-5% revenue growth for FY24. However, TCS saw an improvement in voluntary attrition, which dropped to 14.9% from 17.8% in the previous quarter, with expectations of further enhancements in this metric in the future. In the first quarter (Q1), the six prominent Indian IT service companies experienced their most significant decline in headcount over the past three years, particularly during the April-June period. The combined workforce at TCS, Infosys, HCLTech, Wipro, LTIMindtree, and L&T Technology Services (LTTS) contracted by 18,000 employees, a more substantial decrease than the negative 9,000 in the June quarter of 2021, which occurred during the pandemic. Moreover, IT giants have been postponing or reducing campus recruitment drives, opting for a phased approach to hiring. Data from TeamLease reveals that the Indian IT sector is planning to hire 40% fewer fresh graduates compared to the previous fiscal year (FY23) when they onboarded 250,000 engineers. Typically, major IT companies initiate their campus placement processes around August-September, but this year they have been notably absent from campuses during the placement season. TCS is an exception, having set a target of hiring 40,000 freshers for the current fiscal year.