The tech job market has become fiercely challenging due to the layoff of professionals by businesses to reduce costs. Most companies in the tech sector have been affected by the wave of layoffs, whether they are startups or large corporations like Microsoft and Google.
Amidst this, an analysis by recruitment firm TeamLease Digital revealed that India’s IT companies would reduce their campus hiring by 40% due to solid bench strength, fewer client orders, and uncertainty about when the recession will end.
The decline in demand for IT businesses was a 180-degree from just two years ago when the recruiting frenzy was starting. According to Teamlease Digital statistics, IT businesses are expected to recruit 155,000 students in FY24, according to CEO Sunil Chemmankotil.
This is an almost 48% decrease from the 230,000 recruited in FY23. When hiring in the IT industry was 600,000 in FY22 (during the boom phase following more than a year of the pandemic), the fall is striking.
HR enterprises examining the demand and supply of talent have warned that it is essential to continue hiring on campus to get cost leverage. “It is imperative for companies to recognize that once the markets regain stability, there will be a demand for entry-level manpower, and sourcing talent externally will prove to be a costly endeavor,” said A.R. Ramesh, Adecco India’s director of digital business solutions, professional staffing, and international engagement.
He predicts a 40-50% drop in college hiring from IT corporations due to the current recruiting climate.
Tech Firms To Hire Fewer Freshers
Wipro’s Chief Human Resource Officer, Saurabh Govil, has stated that the business would ‘not be coming to the campus’ because they want to prioritize the job offers already handed out to candidates.
“We are choosing not to go to campus as we want to first honor the offers we have made,” he said, according to a report in Live Mint
He added that the “talent environment today is different from what it was a year ago. The race to hire ahead of demand has been replaced by a more measured approach in light of the declining attrition rates and the ongoing economic uncertainty.”
Infosys said it hired 51,000 freshers last year and has headroom regarding fresher availability for the next several quarters. “We actually had…hired 51,000-odd last year. And a lot of them on the bench are getting skilled, are getting trained. So, we have no specific number for FY’24 at this stage. We have enough; actually, today, sitting on the bench,” said chief financial officer Nilanjan Roy post earnings meeting in April.
Milind Lakkad, chief human resources officer at Tata Consultancy Services, told Mint in April that the most significant IT business will head to university in FY24 to recruit 40,000 people who will be employed to cover exits. On the other hand, according to sources, TCS had a 20.1% attrition rate in the January-March quarter, recruited 110,000 freshers in FY22, and onboarded 44,000 in FY23.
Sangeeta Gupta, senior vice president, and chief strategy officer for IT industry organization Nasscom, said the uncertain business climate has pushed enterprises to reassess their actions, including resolving concerns connected to over-hiring.
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2023-05-25 10:10:43.0
Concerns For Freshers: Study Indicates 40% Decrease In Hiring By India’s IT Sector For FY24
