Infosys intends to switch from a predictive hiring strategy to a need-based one
Post Quarter one April to June 2023 gaining remarkable profit, Infosys Q1 net profit up 11%, cuts revenue growth outlook due to client spending cuts
Infosys intends to switch from a predictive hiring strategy to a demand-based workforce need.
Infosys increased its net profit by about 2% in the first quarter, but it fell short of analyst estimates and reduced its sales growth forecast for the fiscal year downward.
This was attributed by the corporation to customer spending cuts and delays in decision-making, particularly in the financial services industry. Post Quarter one April to June 2023 gaining remarkable profit, Infosys Q1 net profit up 11%, cuts revenue growth outlook due to client spending cuts
Furthermore, Infosys’ workforce shrank, with a net headcount drop of 3,611 reported in the first quarter of fiscal 2024. This was in stark contrast to the prior year’s gain of 52,842 employees during the same period.
In terms of employment intentions, Infosys claimed that it will use a demand-based strategy and evaluate its requirements in accordance with market needs, mirroring the practices of other industry peers.
However, unlike the approximately 50,000 candidates it onboarded the previous year, the corporation did not divulge the actual number of employees it aims to make for the whole year.
Infosys has not yet made any official statements on wage increases. Normally, the corporation announces compensation increases in April, but the decision is still being considered this time.
Similarly, management did not release exact specifics about the amount of variable pay given during the quarter, despite the fact that employee spending increased by 13% year-on-year.
Despite the difficulties, Infosys was able to reduce its attrition rate, which stood at 173 percent for the quarter, compared to 20.9 percent the previous quarter.
Considering the demand climate and the overall business forecast for the remainder of the fiscal year, the company remains cautious about recruiting and other financial decisions.
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