Offer letters for new hires have been cancelled by Wipro, Infosys, and Tech Mahindra, says a report
Leading IT and software companies have cancelled offer letters made to students after postponing their joining by close to three to four months, including Wipro, Infosys, and Tech Mahindra. Numerous freshmen reportedly received offer letters, but eventually, their offer letters were cancelled after their joining dates were postponed.
The news, which was first covered by BusinessLine, cited emails that these businesses sent to freshmen whose offer letters were turned down. The sources state that the students went through a rigorous screening procedure, including numerous rounds of interviews, before receiving these offer letters. “You have been found to not meet our academic qualifying requirements. Consequently, your offer is invalid “read one of the emails. The businesses had not yet responded to the reports. The announcement that IT companies are postponing onboarding or withdrawing their offer letters coincides with rumours of a global IT industry slowdown. The rumour around town is that the availability of easy money for startups in the IT industry is dwindling as a result of the tightening money supply and rising interest rates globally. And all IT companies, from recently launched startups to established tech behemoths, are being impacted by this. The country’s IT/tech sector is not immune to the effects of the global macroeconomic conditions, which have affected Indian sectors amid predictions of a recession and rising prices. Prior to now, experts predicted that startups and the Indian IT sector’s momentum would continue to wane. While Infosys reportedly reduced variable compensation to 70% and Wipro entirely delayed it, TCS had previously delayed variable pay to its employees. In August, hiring activity in the IT sector decreased by 10%, according to the most recent report from Naukri.com. Around September 28, 2022, six months after receiving the offer letter, an engineering graduate from Bhopal received a rejection letter from the software giant Infosys. According to the email they received, Infosys cancelled the hire and stated that they lacked the requisite academic credentials for the position. They denied this, telling Businessline that they had obtained the necessary academic credentials and had even scored higher than the minimum scores needed. Nevertheless, Infosys passed on the applicant. Four months after receiving the offer letter, Wipro rejected a Vijayanagar computer science graduate. The candidates were informed in the rejection email that they had been disqualified because they had not followed Wipro’s assessment rules. The applicant told Businessline that they had submitted all the necessary paperwork and met all the qualifications for the position. They have turned away despite that. Three months after receiving the offer letter, Tech Mahindra turned down a different applicant. Because the candidate failed a certification test, they rejected them. Candidates must pass 12 courses as part of the hiring procedure. The concerned candidate passed every course and was awarded completion certificates; however, they were nonetheless turned down. In response to the recently cancelled hires, Wipro released a statement in which it promised to gradually honour all offer letters given to suitable individuals. Tech Mahindra and Infosys have not yet responded to the situation. A hundred or more Indian employees of EPAM Systems, an IT services business listed on the NYSE, have been asked to resign. Sources claim that the corporation has also cancelled the offer letters of other people who were scheduled to start working there in the upcoming months. This occurs as the world’s largest economy is anticipated to be slipping towards an oncoming recession, US banks are predicted to decrease IT spending, and IT companies are already facing macro headwinds. According to news sources from last month, HCL Tech had laid off close to 350 employees who were collaborating on a Microsoft project, indicating that the work had been awarded to Accenture.
Many businesses have frozen employment as a result of the challenging business environment. Even industry behemoths like Google, Facebook, and Microsoft have urged teams to make better use of the available resources while postponing new hires. In terms of Indian IT enterprises, past studies indicated that these businesses were delaying the onboarding of new hires by three to four months. Additionally, several recent graduates wrote on social media sites like LinkedIn about the process’s delay.