BENGALURU: The IT sector has been witnessing a decline in employee headcount for at least five quarters now, but projections suggest a notable increase in hiring activity, with expectations of an 8-10% rise in recruitment throughout this calendar year.
According to experts, the second half of this fiscal looks promising for IT jobs. “The overall hiring landscape within the IT industry is forecasted to experience a surge of 12-15% in CY2024, driven primarily by the expansion of GCCs (global capability centres) and the stabilisation of the global economy,” said Kapil Joshi, Deputy CEO of Quess IT Staffing.
Nearly after two decades, TCS, Infosys and Wipro together saw a decline of 63,759 employees in FY24. Also, apart from TCS, no IT firm is likely to visit campus this year.
Infosys CFO Jayesh Sanghrajka during Q4 earnings press conference said that the company’s hiring model has changed in the last few years and that they are now on a more agile model of campus hiring. Also, IT firms are now focusing on utilisation including trainees.
“The reduction in employee headcount at major IT companies in India can be attributed to several factors. Firstly, there’s an uncertain demand situation across global markets, particularly in the US and Europe, where cautious spending by clients has led to a decrease in demand for IT services. This decline is evident in the collective headcount drop of over 17,500 employees across the top 8 IT firms in the December quarter alone,” Joshi said.
Additionally, geopolitical tensions, such as the conflicts between Israel-Hamas and Russia-Ukraine, have contributed to the downturn, he added.
Nirupama VG, Founder, ADAstra consultants, said the rapid adoption of automation and AI technologies has led to concerns about job displacement, with 30% of workers fearing technology may replace their roles. The rise of remote work, with 28% of office workers globally working remotely, has influenced employment patterns.
“The outlook appears promising despite initial setbacks. The presence of over 1600 GCCs in India, employing more than 1.5 million people, reflects the robust demand for IT professionals. The cybersecurity sector, in particular, shows potential, with a projected need for an 89% increase in the global cybersecurity workforce by 2023,” Nirupama said.