BENGALURU: The IT industry witnessed historic hiring in FY22 due to positive sentiment in the sector. Owing to the strong project pipeline, hiring will continue to witness 25-35 per cent growth even this fiscal, though slightly lower than last year, said Sachin Alug, CEO of NLB Services, an international IT workforce solution provider.
“Most of the contracts are multiyear contracts. Further, the thrust on digital transformation is still strong. Though discretionary spending may come down, companies will continue to focus on retaining tech talent,” Alug said.
In an interaction with TNIE, Alug said the lead wage hike pressure in the US and Europe is impacting the revenues. “As India is still a cost-effective market, companies will continue to invest in India and move their jobs to India,” he said.
“India is a unique talent market, we have resources who are well-versed in legacy skills as well as new age technologies. Be it data analytics, cyber security or DevOps, we have the largest pool of resources. This abundance of resources also gives us an advantageous position,” he added. In its IT sector outlook, Kotak Securities recently said that technology spending is viewed as an investment for future growth and will not be cut drastically.
“However, a few discretionary areas such as consulting may be impacted. On the other hand, there is considerable scope to cut down on the workforce in various operations and use automation and tech-driven solutions to yield cost savings. Vendor consolidation and lower-cost outsourcing can throw opportunities for Indian IT firms,” it added. When asked about attrition, Alug said it will be one of the core areas that firms will be focusing on this year. “Companies have earmarked close to 40 per cent of their HR budget towards up-skilling initiatives.”