HCLTech expands in Romania, to hire 1,000 people in two years

Indian IT services major HCLTech plans to expand its operations in Romania and hire 1,000 more people in the country in the next two years.

HCLTech, which completed five years of operations in Romania, will scale up its offices in Bucharest and Iasi. A third of the new roles will be offered to graduates recruited through partnerships with leading Romanian universities, the company said.

The company currently employs approximately 1,000 people in Romania serving global clients by leveraging its portfolio across digital, cloud, engineering, and software.

“We are investing in creating opportunities for local talent in Romania to pursue careers in technology. As we celebrate our fifth anniversary and embark on the next phase of our growth journey in the country, we remain committed to supercharging progress for our people and local communities,” Iulian Paduraru, HCLTech’s country lead for Romania.

“HCLTech is an important market player in Romania. We expect its growth trajectory to continue to improve as the business strengthens its local workforce and broadens its technology offerings in Romania,” said Alexandra Simion, Associate Consultant, IDC.

Country Lead – Romania, HCLTech

Indian IT services firm to report muted sequential growth in Q4, say analysts

Indian IT services companies are expected to report weak sequential revenue growth in the fourth quarter ended March as there is increased cautiousness among clients around decision-making due to heightened uncertainty arising from the recent banking crisis, according to analysts.

“Deal pipelines have not shrunk, but conversion to new deal wins is taking longer time. Also, in certain cases, conversion of orderbook to revenues in terms of deal ramp-ups is taking longer than usual. This, in our view, implies right-shifting or postponement of demand to H2 FY24 or even FY25 as digitalisation agenda of clients remains largely intact, but their near-term focus has shifted to cost optimisation and increasing efficiency,” ICICI Securities said in a report.

The brokerage firm said that, for companies under its coverage, the exposure to US regional banks is in low-mid single digits of overall revenues, but the overall exposure to BFSI vertical is quite significant. “This might lead to a decline in sequential revenue growth this quarter.”

According to analysts at Motilal Oswal, while the BFSI sector has been resilient for the last few quarters, recent industry developments have added to caution on its tech spending. “Though the Indian IT services firms do not have meaningful exposure to the affected US regional banks, fears of a banking crisis could impact near-term IT spending by banks and will be the key monitorable during the Q4 management commentary,” the brokerage firm said.