Why top IT firms delaying onboarding
IT firms delaying onboarding – Due to its exposure to the ongoing economic slump in the West, top IT and ITeS companies’ delays in onboarding new staff of up to 12 months have drawn attention to the sector’s slowness. Business Today had earlier claimed that while handing out offer letters to new hires as early as September 2021, Infosys, Wipro, HCL Technologies, Tech Mahindra, Accenture, and Capgemini have yet to provide joining dates for some of them.
Techies assert that since September 2021, they have been waiting for an onboarding date, also known as the day of joining, at the major IT organizations.
“I have offers from Infosys, Wipro, and Capgemini, provided to me as early as September 2021,” one such IT professional told Business Today. They have been delaying the onboarding date for more than a year.
BT earlier reported that worried job applicants had contacted to Infosys to inquire about the delay in their onboarding, to which Infosys replied via email with the following statement: “Please be informed that we are allocating DOJ depending on our business requirement. A joining communication will be sent to you at least 2-3 weeks before your joining date.
An identical email answer from Wipro was sent to another IT expert. “The corporation is writing to us and saying that they would provide us a joining date as per business requirement,” they said in a statement to Business Today. But if they had no business requirement, why did they issue us an offer letter?
IT firms delaying onboarding
On the other hand, Capgemini tweeted in response to upset techies on social media, saying, “We understand your grievance. You may be sure that we will uphold all of the issued letters of intent. Our onboarding procedure is coordinated with client needs and implemented gradually to account for project timetables while giving new hires the appropriate training.
A specialist closely monitoring the IT industry who was informed of these events told Business Today, under the condition of anonymity, “They do not have as many projects as they did previously and so, they have limited hiring.”
They continued, “All of these offers were made at a time when the IT industry was experiencing a boom; as a result of the abundance of projects, they went on a hiring binge. But the overall IT sector has been impacted by the current global macroeconomic conditions.
The second quarter profits report for Indian IT businesses’ fiscal year 2022–2023 is anticipated to be made public the following week. Although ICICI Direct anticipates that high attrition would limit margin improvement, the company still anticipates that the sector’s growth momentum will continue. According to Edelweiss, TCS, Infosys, and Wipro should record sequential sales increases of 0.8%, 2.9%, and 2.2%, respectively.
Upadhyaya continued, “Although the management commentary is currently very favourable, we think that things will probably change as you move forward. Budgets for IT in 2023 could very well be delayed or perhaps substantially reduced.”