IT services giant’s attrition grew to 23.8 per cent in the first quarter of FY23
Indian IT services company HCLTech will scale up its operations in Brazil by opening a new technology center in Campinas city and hiring 1,000 employees in that country in two years as it faces high attrition back home.
The IT talent it hires in Brazil will work on solutions and services for its digital, engineering, and cloud domains. The multinational company added that it will embrace an agile workplace in line with its hybrid operating model.
HCLTech set up its first office in Brazil’s São Paulo in 2009 and now has 1,100 employees across delivery centers and offices in that city, São Leopoldo, and Curitiba. The company serves more than 200 customers in Brazil, as part of multi-year agreements with them.
The company considers Brazil a key market due to the rapid digitalization of the country’s public and private sectors, research and development (R&D) investments, and workforce development.
“We are committed to delivering technology-driven differentiated solutions to our clients’ increasing demands for digital transformation. Our commitment to Brazil is part of our long-term strategic plan in the country,” said Anil Ganjoo, chief growth officer, Americas, and Executive Sponsor, Brazil, HCLTech.
HCLTech is among the top Indian companies battling high attrition rates in the past few quarters. The profit margins of HCLTech’s service business came under pressure in Q1 FY23 when the attrition rate grew to 23.8 per cent from 21.9 per cent in the preceding quarter.
The company’s management, while reporting results for Q1 FY23, had said the attrition rate was “expected to remain high in coming months.” The management indicated that the company was accelerating hiring in Sri Lanka, Vietnam, Romania, Mexico, Costa Rica, and Brazil.
“We are excited to continue expanding our presence and bringing new economic opportunities to Brazil,” said Fabiano Funari, country head, Brazil, HCLTech.
“We’re committed to becoming the preferred digital partner for clients in Brazil by delivering the best technology solutions to help our local and global clients on their technology journeys. We are also committed to developing the new generation of technology talent,” he said.