BENGALURU: The Indian IT firms are on a digital wave that is seeing smaller deal sizes, making it harder to grow at the same pace and profitability during the technologies transition, according to indiatimes.com.

However the reason for raising the hiring target for the year is to be able to have a little bit of a bench. Indian IT companies have big plans to boost in-house training because experts say the industry lacks enough people to win and service digital contracts. If you look at the results for the last few months, you will see payments to third-party consultants have been increasing.

Companies have acknowledged that they cannot control this cost until they have the talent in their own companies. Tata Consultancy Services which is the largest player in the IT Sector is also raising its hiring target to almost 75,000 for the year and hopes to exceed its goal of training 1,00,000 employees on digital technologies in FY16. The National Association for Software and Services Companies (NASSCOM) expects companies to spend 1-2 percent more on training, than the total costs incur now.

Fees paid to external consultants rose 15 percent year-over-year to $330.2 million at TCS, far outpacing revenue growth in the period. Infosys costs for technical sub-contractors rose 55 percent year-over-year to $131 million.

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