Wipro's hiring at highest in a decade to hedge against employees leaving

• Wipro added more than 12,000 employees in April-June quarter as it expects attrition rate to go up further.
• The IT giant’s total headcount has risen to 209,890
• Wipro reported 12.2% revenue growth in June quarter, out of which 4.9% was organic growth and the rest came through Capco.

The war for talent seems to be a rising concern for all information technology (IT) companies in India. While Tata Consultancy Services (TCS) and Infosys have started gearing up on the expectations of a rise in attrition, Wipro has added about 12,000 employees in the June quarter alone. It is the highest ever in a decade.

The company’s IT services workforce crossed the milestone of 200,000 taking the overall headcount to 209,890. Wipro has added more than 12,000 employees, which is 80% of what it had added in FY21 and highest in the last decade, said Thierry Delaporte, chief executive (CEO) and managing director (MD) of Wipro.

Like its peers, Wipro is also expecting the attrition rate to go up and hence it has been hiring aggressively. In fact, it will roll out 30,000 offers for freshers to join in FY22.

“Attrition, as I had called out last quarter itself, will see an uptick, which is very much in line with the demand environment in the industry,” said Saurabh Govil, president and chief human resources officer at Wipro.

He mentioned that 80% of the organisation will go through three promotion cycles in 12 months- December 2020, June 2021 and again in December 2021.

Besides, the company has been conducting several employee training activities and distributing bonuses to retain its employees.

“We had called out last quarter that we will do a skill based bonuses [sic]… Apart from that, to augment the supply chain, we are doing unprecedented hiring in terms of freshers into the organisation. We will be onboarding 6,000 freshers in September quarter, which is the highest every Wipro has done. And we will be rolling out more than 30,000 offers this year for freshers to join us next year,” added Govil.

Wipro delivered exceptional results in the June quarter with its acquisition of Capco finally making it onto the books.

The company reported 12.2% sequential growth in revenue, out of which 4.9% came organically, while the rest came from Capco, said Jatin Dalal, chief financial officer at Wipro at a press conference held after the announcement of June quarter financial results.

Wipro had announced its acquisition of Capco on April 29, this year, for a whopping $1.45 billion — the largest acquisition by the company that is expected to boost the consulting segment of the financial services vertical.

Analysts had expected the company to post a revenue growth of about 9.5% because of Capco acquisition.

Moreover, the company has posted a net profit of ₹3,237 crore in April-June quarter, up from ₹2,974 crore in the previous quarter.

“Our sequential revenue growth of 12.2% was well ahead of the top-end of our guidance range, both organically and with Capco. Though in the early days yet, I am pleased with the way we have collaborated with Capco to build our joint go-to-market offerings and strategy. We remain focused on deepening our customer relationships, investing in talent and capabilities for the future, and winning market share,” said Delaporte.

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