Hiring in India’s IT services sector has remained largely flat for the past six to seven quarters, with no visible signs of revival in the July-September period either, according to Quess Corp executive director and CEO Guruprasad Srinivasan. According to PTI, he said demand has shifted from traditional IT companies to global capability centres (GCCs) and non-IT sectors.“At least for the last six to seven quarters. And we are also not seeing very active demand coming in, even in Q2 as well. So, IT services being a bit muted or dehiring happening, there has been no impact on Quess,” Srinivasan was quoted as saying by PTI.Quess Corp, which provides workforce solutions, has seen 73 per cent of its staffing demand come from non-IT sectors and GCCs. According to Srinivasan, demand is now led by profiles in artificial intelligence, cloud computing, and cybersecurity. “On average, the wage in itself is about Rs 1.25 lakh. It’s a high margin for us. When it comes to margin, it’s about 15 to 18 per cent,” he noted.For the June 2025 quarter, the company posted a 4 per cent year-on-year increase in consolidated profit after tax at Rs 51 crore, compared to Rs 49 crore a year ago. The growth was attributed primarily to performance in the professional staffing segment, even as general staffing and overseas business remained flat, and the digital platform business posted a decline of over 50 per cent.Srinivasan said the company’s revenue mix has improved, with professional staffing, a high-margin vertical, gaining share. “Professional staffing maintained its momentum from the previous year, posting its best quarterly performance in over 15 years with revenue of Rs 244 crore. It achieved a double-digit margin of 10.2 per cent with our annualised revenue run rate approaching Rs 2,000 crore,” he said.The company reported signs of recovery in its general staffing business during the June quarter, driven by increased headcount and new mandates. The segment clocked Rs 3,122 crore in revenue, flat year-on-year and marginally lower quarter-on-quarter. However, June 2025 witnessed a strong rebound with 6,500 net additions, offsetting losses in April and contributing to a total net addition of 2,000 for the quarter.“June 2025 was the first month since December 2024 that we saw an uptick across headcount, new demand, open mandates and fulfillments,” Srinivasan added.Sectorally, manufacturing led the staffing additions, followed by BFSI, consumer retail, and telecom, though retail and telecom witnessed slight declines. Srinivasan said BFSI remains the primary growth driver, followed by telecom, product and tech sectors, while auto, pharma, retail, and manufacturing continue to face pressure from tariff-related headwinds.The company’s exposure to GCCs, mainly in digital, high-tech, telecom, electronics, and media, stands at 73 per cent. “During the quarter, we also added 12 new contracts, each with a promising projection of headcount growth in upcoming quarters. Our open mandates are currently over 1,200 positions,” he said.
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