Amidst increasing concerns regarding hiring in the information technology (IT) sector, Capgemini India has outlined plans to recruit between 40,000 and 45,000 employees this year. CEO Ashwin Yardi informed The Hindu Business Line that approximately 35% to 40% of these new hires will be lateral entrants.
Capgemini, which currently has a workforce of around 1,75,000 in India, is witnessing a consistent increase in work being directed to the country. Clients are seeking to reduce costs and enhance efficiency, making India an increasingly appealing delivery location. Yardi noted that this demand is expected to have a positive impact on the company’s overall revenue performance.
To support its hiring initiatives, the Indian division of the French IT services firm has partnered with over 50 colleges and campuses. Recruitment activities for the current season are already in progress. A significant focus for the incoming workforce will be early training in artificial intelligence (AI), aimed at equipping new talent for the rapidly evolving AI landscape.
Capgemini’s hiring announcement follows closely after Tata Consultancy Services (TCS) disclosed its plans to reduce its global workforce by approximately 2%, which equates to more than 12,000 employees over the year.
By contrast, Infosys CEO Salil Parekh affirmed the company’s intention to grow its team: “We recruited over 17,000 people (gross hiring) in the first quarter and plan to bring in about 20,000 college graduates this year,” he stated in ToI.
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Last month, Capgemini also announced a $3.3 billion acquisition of the business process outsourcing (BPO) firm WNS, a strategic move aimed at combining capabilities to address the growing demand for advanced and automated services among enterprises. Nonetheless, some analysts have expressed concerns regarding the potential impact of AI on the traditional BPO model, which could affect long-term revenue in that segment.
Despite these concerns, Capgemini anticipates that the WNS acquisition will deliver earnings benefits in the near term. The company is forecasting a 4% increase in earnings per share (EPS) by 2026, followed by a 7% rise in the subsequent year.
Even so, the overall business outlook remains cautious. A recent report by Reuters noted that Capgemini has revised its full-year revenue guidance in light of subdued demand and ongoing global economic uncertainty. The firm now expects growth to fall within the range of -1% to +1%, a revision from its earlier projection of -2% to +2%.
In addition, Capgemini has reported a 15% year-on-year decline in operating profit for the first half of the year, with earnings falling to €976 million.
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