Domestic IT Hiring May Not See Pick-Up, BFSI Could Recover By June: TeamLease CFO

Hiring in the IT services segment, especially domestic IT remains muted, according to Ramani Dathi, chief financial officer at TeamLease Services Ltd.

"Currently, we don’t have any open positions in the BFSI segment, but a pick-up is expected around June-July," she told NDTV Profit.

However, Dathi added that demand across other sectors remains strong. "Barring one NBFC client, we are seeing good demand and open positions in FMCG, retail, e-commerce, quick commerce, pharma, and telecom," she said.

The company reported a dip in headcount this quarter due to planned absorption by a large NBFC client. "That’s the main reason for the headcount dip," she said. "Excluding BFSI, we have added about 32,000 net new employees in the general staffing business this year. But due to the hit from this NBFC client, it came down to 27,000."

While IT recovery is slow, "we haven’t added any headcount". However, better operational efficiency and a stronger Global Capability Centers mix have helped expand margins in the specialised staffing segment.

"GCC growth continues in line with the last 1–2 years, but to grow revenue and volumes meaningfully, we need IT services to pick up as well," she said.

On the HR services side, she noted that Q4 is typically a strong quarter due to seasonal billing from the education sector. “That has helped boost profits for the quarter. HR services have contributed a substantial jump in profit,” she said.

Dathi also addressed regulatory changes affecting NBFCs. "The RBI’s reiteration that certain functions must be insourced by NBFCs directly was anticipated. We planned for this well in advance and managed to limit the impact to 7,500 employees."

The firm projects low single-digit revenue growth, but with operational efficiencies and internal initiatives. "...we expect low double-digit profit growth in the specialised staffing business," she said.