BENGALURU: Amid macroeconomic headwinds affecting the US and Europe, IT services sector faces a downward hiring trend of 25-30%. However, this situation has opened up new opportunities, with GCCs (Global Capability Centres) ramping up talent acquisition and projecting an estimated employee strength of 1.4 million, and it is likely to increase by 10%, said Quess IT Staffing CEO Vijay Sivaram.
Despite the challenges, Indian enterprises are projected to see a 5-10% rise in recruitment in FY24, he added. In its recent report, Quess Corp said technological adoption and industry evolution are transforming the global business landscape, particularly in India, where GCCs are expanding their footprint and seeking new growth and innovation prospects.
Meanwhile, Icra expects IT services revenue growth to be moderate 3-5% in USD terms in FY24, lower than 9.2% YoY growth in FY23 owing to persistent uncertainty in key markets, resulting in pauses and deferral of non-critical projects and slowdown in discretionary IT spends by key sectors like BFSI, retail, technology and communication. There has been a significant reduction in hiring by IT services firms in last three quarters, given slowdown, coupled with utilisation of considerable excess capacity added in FY2022 and H1 FY2023.