Persistent Systems, a mid-tier IT company based in Pune, is planning to cut its fresher intake sharply in FY24. The decision comes as the IT sector faces challenging times due to macro uncertainties. According to Sunil Sapre, Chief Financial Officer of Persistent Systems, the company onboarded over 3,000 freshers in the previous year and plans to hire less than 1,000 freshers in FY24. The company is facing difficulties in deal closures, ramp-ups after signing clients, and a reduction in discretionary spends by customers.
Despite these challenges, Persistent Systems has a healthy deal pipeline, with a Total Contract Value (TCV) of USD 475 million for the September quarter, its highest ever in a three-month period. The overall headcount of the company declined by 288 employees in the September quarter, primarily due to a lower number of lateral hires. However, there has been an improvement in attrition, which declined from 15.5% to 13.5% for the same period.
Sapre stated that the overall revenues of the company rose by 17.7% to Rs 2,411.6 crore. Although the banking, financial services, and insurance segment are showing some softness, the company is confident that it will bounce back by the last quarter of FY24. Sapre also mentioned that the US Federal Reserve’s stance on rates will be clear by then, which will further influence the company’s performance.
Persistent Systems, which reported about 20% growth in the September quarter, is actively looking for more acquisitions. The company has already acquired multiple companies and integrated them into its operations. It is currently searching for entities with a turnover of USD 20-50 million to further expand its portfolio.
In summary, Persistent Systems plans to reduce its fresher intake for FY24 due to the challenging times faced by the IT sector. However, the company remains optimistic about its deal pipeline and revenue growth. It is also actively pursuing acquisitions to enhance its business operations and offerings.
