Defying the industry-wide trend of slowed hiring due to macroeconomic challenges and demand uncertainties Tech Mahindra’s Q3 results tells a different story. As disclosed in its Q3 earnings on 24 January, the IT firm added about 6,464 employees for the quarter ending 31 December.
This marks the second consecutive quarter of net additions.
In the last quarter, Tech Mahindra expanded its workforce by 2,307, bringing the total headcount for Q3 to 1,57,068. The attrition rate decreased from 11 per cent in Q2 to 10 per cent in Q3, continuing the declining trend since the start of fiscal year 2023.
In media statements, the company’s spokesperson also emphasised its focus on building generative AI talent. By Q2, around 10,000 associates had been upskilled, the statement revealed.
Tech Mahindra’s current strategic focus is on diversifying further into segments such as BFSI (banking, financial services, and insurance), healthcare, and life sciences. Currently, 40 per cent of the company’s revenue is derived from the communications, media, and entertainment (CME) business.
On the other hand, TCS witnessed its employee base shrink by 5,680 in the three months ending December, bringing the total to 6.03 lakhs. A similar decline was witnessed in the previous quarter. The company attributed the reduction to maintaining efficiency in a ‘reduced demand’ environment, suggesting voluntary attrition rather than layoffs.
