Infosys is off to a dynamic start in the new financial year, emphasizing employee growth and wage increases. The prominent IT giant based in Bengaluru has initiated salary hikes for FY26, beginning in January, while many competitors are still hesitant to follow suit. Additionally, Infosys has set an ambitious goal to recruit over 20,000 fresh graduates throughout FY26.

Workforce Expansion and Hiring Goals

During the first quarter of the year, from January to March, Infosys welcomed 199 new employees, marking its third consecutive quarter of growth after a six-quarter slump. This brings the company’s total workforce to 323,578, reflecting an increase of 6,388 from the previous fiscal year. Last year, Infosys successfully onboarded 15,000 freshers, achieving its hiring target after a more conservative approach in FY24, where only 11,900 freshers were added compared to 50,000 in FY23.

Insights from Leadership

At a recent earnings call, Infosys’s Chief Financial Officer, Jayesh Sanghrajka, confirmed the company’s commitment to wage increases. He stated, “We are on track with wage adjustments, with a significant portion rolled out in January and the remainder effective from April 1.” Sanghrajka also highlighted that the company aims to bring on board over 20,000 freshers in FY26. He noted that attrition rates are influenced by various factors, including competition, opportunities in global capability centers, and the allure of higher education.

Competitors Take a Cautious Approach

As Infosys forges ahead with its hiring and salary strategies, its competitors are treading carefully. TCS, for instance, reported a modest net increase of 625 employees last quarter and has chosen to postpone wage hikes, citing uncertainty in the market. Similarly, Wipro, which added 614 employees, plans to revisit salary increments later in the fiscal year.

Attrition Trends and Workforce Management

In terms of attrition, Infosys experienced a slight uptick, rising to 14.1% from 13.7% in the previous quarter. Earlier this year, the company also made headlines for letting go of 400 trainees at its Mysuru campus who did not pass evaluation tests after three attempts.

This proactive approach to hiring and compensation reflects Infosys’s strategy to attract talent while navigating a fluctuating market landscape. As the financial year progresses, it will be interesting to see how these decisions impact the company’s growth and its competitive standing in the IT sector.