Headcount across global systems integrators (GSIs) or IT firms are down for “unprecedented” six consecutive quarters now. However, extensive hiring undertaken by global capability centres (GCCs) and new ones setting-up shop in India, which are giving some push to sluggish tech talent intake, says Vijay K Thadani, Vice Chairman and MDr at NIIT Ltd – which offers learning and talent development programs to individual and corporates.

According to him, companies are adjusting talent inventory on flattening of growth trajectory. And recovery in tech revenues are expected H2FY25 onwards.

The GCCs or Global Capability Centers – offshore units established by multinational corporations to perform a range of strategic functions – are amongst the six sectors which hire tech talent (apart from IT services companies, software product companies, startups, consulting firms and non-tech sectors).

Recovery in FY24

The business has seen a strong recovery during the last four quarters. Revenues stood at ₹304 crore. Earnings (EBITDA) increased by 364 per cent y-o-y to ₹48 crore, from ₹10 crore in FY23. Operating margins are up 129 basis points, to 2 per cent. The profit after tax was at ₹38.4 crore, up 1100 per cent y-o-y; from ₹3.2 crore in FY23.

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The recovery was led by increased penetration in BFSI, GCCs and Tier II GSIs and Indian enterprises, Thadani added. Hiring demand by large private sector banks remains robust contributed by branch expansion and deeper participation in wealth management.

“Hiring by GSI are now down for six consecutive quarters. While GCCs are expanding and BFSI is up, they are yet to make up for revenues contributed by GSIs. However, we have seen some recovery in business, specially in FY24 and overall recovery in businesses is expected in H2FY25, that is July onwards. We expect hiring by GSIs to pick up around that time,” he told businessline.

Change in revenue mix

The revenue mix has changed. Hiring by BFSI is on the rise and there is increased demand for GenAI services. On the other hand, tech revenues are down. The earnings ratio is now in the 61–39 (tech to BFSI) ratio.

Also read: IT job growth in Bengaluru and Hyderabad defies national slowdown

Revenue from BFSI and other programs stood at ₹93.5 crore, up 39 per cent y-o-y. It contributed 31 per cent, up 11 percentage points over last fiscal. The revenue from technology programs stood at ₹210 crore, down 23 per cent y-o-y. Traditionally, earnings fromthe tech sector and BFSI (banking, financial services and insurance) were in the 80–20 ratio for the company.

“Change in business mix has resulted in a more balanced portfolio with contribution from both early careers and work pros at 50 per cent each,” he said.

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