Infosys accuses Cognizant of engaging in unfair employee poaching and has communicated its grievances to Cognizant.

Indian IT services companies are currently engaged in an intense competition for talent as they expand their presence in overseas markets, leading to a trend of poaching employees from each other. For instance, Infosys, headquartered in Bengaluru, plans to hire over 10,000 people in the US within the next two years. Notably, more than half of its top-paid executives hired onsite in fiscal 2017 were recruited from rival companies, including 12 from Cognizant, 13 from Capgemini, five from TCS, and eight each from Wipro, Accenture, and IBM.

This talent arms race is fueled by rising protectionism globally, with a focus on restricting H-1B visas, prompting companies to accelerate their foreign market recruitment efforts. The demand for IT professionals in the US, especially from Indian firms, has driven average annual salaries to around $100,000, a significant increase from the previous average of $70,000.

Phil Fersht, CEO of IT consultancy HfS Research, observes that the competition for talent is not a new phenomenon but acknowledges an increased need for onshore talent. Infosys COO UB Pravin Rao emphasizes the necessity to acquire talent quickly, leading to a focus on recruiting from rival Indian firms.

While companies like Cognizant are addressing the need to scale up onshore by hiring from campuses, making acquisitions, and rebadging employees from client organizations, industry challenges and further consolidation may cool down the intense talent market. Despite the current hiring frenzy, companies are also building their own talent pools within markets to reduce dependence on large external hires.

In conclusion, the Indian IT sector is experiencing a dynamic talent landscape driven by global market expansion, protectionist measures, and the need for skilled professionals in the US. The competition for talent is expected to continue, with potential shifts as the industry evolves.