Accenture Q1FY25: Plans hiring 80,000 in India, 4-5 lakh IT sector jobs in 2025
Accenture Q1FY25: Plans hiring 80,000 in India

Accenture Q1FY25: Plans hiring 80,000 in India, 4-5 lakh IT sector jobs in 2025

Accenture has reported remarkable results for the first quarter, showcasing a highly positive outlook, primarily fueled by significant growth in the Americas region.

Notable highlights include an anticipated increase of 9% to 11% across various business lines, which may have beneficial effects on Indian IT firms as well.

The company has experienced a notable rise in its workforce, adding around 25,000 employees this quarter, following the recruitment of 24,000 in the preceding quarter.

Revenue has reached a record high, climbing from $16.41 billion last quarter to $17.7 billion this quarter, emphasizing Accenture’s strong performance.

Accenture to Create 80,000 Jobs in India by 2025

With approximately 40% of its workforce based in India, Accenture anticipates a growth rate of 4-7%, which will positively influence talent acquisition through new hires, investments in campus graduates, and replacements for attrition.

The results for Q1FY25 indicate that Accenture’s revenue has surpassed expectations by about $200 million to $240 million, reflecting a trend of positive growth.

Their updated guidance suggests an anticipated increase of 4% to 7%, further reinforcing a sense of optimism.

Accenture has reported $1.2 billion in generative AI bookings and a total order booking of nearly $100 billion, with consulting services accounting for $46 billion and managed services for $53 billion.

Geographic expansion is apparent, with the Americas experiencing a 9% increase, EMEA a 10% rise, and APAC a 6% growth.

Notable revenue growth was recorded across various sectors, including a remarkable 133% increase in health and public services, alongside a 12% rise in product sales.

With an estimated workforce of around 799,000 and an average revenue generation of $80,000 per employee, it is anticipated that approximately 58,500 additional employees will be necessary in India to support the projected revenue growth of $4.5 billion, where 40% of the workforce is currently based.

4-5 Lakh IT Jobs in India by 2025

The leading Indian IT firms—TCS, Wipro, Infosys, Cognizant, and HCLTech—reported combined revenues nearing $89-$90 billion for the fiscal year ending in March 2024.

Their total workforce is close to 2 million, with specific employee counts of approximately 650,000 for TCS, 300,000 for Wipro, and similar figures for the other companies.

An analysis suggests that these firms require roughly 2,200 to 3,000 employees for each billion dollars in revenue.

Assuming a collective growth rate of 5%, an additional 100,000 employees will be necessary.

Considering a 20% overseas workforce, the effective employee base is reduced to about 1.64 million, resulting in a projected need for 300,000 new hires, taking into account attrition and growth.

AccentureFY2025 1

Recent analyses indicate a 10% rise in recruitment activities, with an overall anticipated growth of 23-24%. This underscores notable expansion trends within the industry’s hiring practices, especially in campus recruitment initiatives, which are projected to contribute an additional 250,000 employees.

Salary Increases of 6-10% at Accenture in 2025
Labor costs play a crucial role in the total expenditures of IT service organizations, particularly in India, where managed services are more prevalent than product implementation.

At present, the revenue distribution between managed services and product implementation in India stands at roughly 50/50.

As a result, the financial outlook suggests that a salary increment of 6 to 10% for employees may be achievable if organizations can accommodate a bottom line impact of 3 to 5%.

With an expected growth rate of about 5% among leading companies, salary adjustments between 5% and 8.5% could be realized, translating to a 2.5% to 4% effect on the bottom line.

Nevertheless, due to difficulties in increasing client rates and a decline in smaller investments, organizations must proceed with caution regarding salary increases to protect their profitability.

The Chief Human Resources Officer of Accenture anticipates that employees in India may see a salary increase of approximately 6 to 10% this year.

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