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Infosys ups its revenue guidance for FY22 despite rising attrition woes, to hire 45,000 freshers in FY22

Infosys ups its revenue guidance for FY22 despite rising attrition woes, to hire 45,000 freshers in FY22

The attrition rate for Infosys has climbed to 20.1 per cent in the September quarter.

The demand environment for digitisation spends hasn't gone down considerably, Infosys CEO Salil Parekh said. The demand environment for digitisation spends hasn't gone down considerably, Infosys CEO Salil Parekh said.

Higher demand environment for digitisation services, especially in cloud and data analytics from the enterprises, has given a renewed confidence to the IT giant, Infosys, which has increased its revenue growth guidance in the range of 16.5-17.5 per cent for FY22 instead of 14-16 per cent it predicted earlier. This is despite the attrition rate climbing to 20.1 per cent in the September quarter (Q2, FY22) from 13.9 per cent last quarter amidst talent war going on in the IT industry currently.

The demand environment for digitisation spends hasn't gone down considerably, Infosys CEO, Salil Parekh told BusinessToday.in in a reply to a question. He added that with markets re-opening globally, and people reporting to work, the spending on remote work technology may have reduced, however, the cloud and data analytics have continued to see a strong traction from the clients.

This has also led to Infosys reporting good operating margin at 23.6 per cent, even as the costs of talent acquisition may go higher considerably in the coming quarters. Pravin Rao, the Chief Operating Officer, described this as "a new normal" which the IT service providers may have to deal with, and which in the near term may put constraints on the supply side.

The Bengaluru-headquartered firm will onboard 45,000 fresh engineering graduates for FY22 to deal with the attrition challenge, while also investing in the training and reskilling of their current employees.

Also Read: Infosys Q2 results: Net profit up 11.9% to Rs 5,421 cr, revenue up 20.5%

As for digital services, it has been one of the key focus areas of Infosys, and now accounts for 56.2 per cent of the total revenues for the company.

Although the mega deals, which Infosys was able to sign last year, are seemingly missing in FY22, Parekh said that the company's deal pipeline is fairly strong and which will have a healthy mix of large and small deals. "Despite a strong demand, it is very hard to predict a mega deal, but we have had 22 large deal signings this quarter with a total contract value of $2.15 billion," he said.

In terms of business segments, banking and financial services continue to bring in major revenues for the company and now commands a 32.3% share. This is closely followed by retail, communication, energy utilities, and manufacturing.

Infosys to announce a new company structure soon

Parekh pointed out that Infosys is soon going to announce a new structure, which will see some changes in the top leadership roles. This follows the news that the company's COO and an Infosys veteran, Pravin Rao will retire. Rao had spent close to three decades with the company.

Infosys's key rival, Wipro had earlier announced a linear structure within the firm when the CEO, Thierry Delaporte took over last year.

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