Debasis Mohapatra
Bengaluru, 5 May
Hiring in the technology industry is unlikely to bounce back in a significant way in the coming quarters amid geopolitical uncertainty and the evolving impact of generative AI (GenAI) on productivity.
Experts in the HR industry said that Indian IT services firms have been cautious in adding headcount in recent quarters as the projects won by them are mostly short-term in nature.
“Technology hiring continues to be in a bit of turmoil. Because, on the one hand, automation is happening, and on the other hand, global geo-political uncertainty is impacting hiring. This is prompting large corporations across the world to pursue a ‘wait and watch’ policy with regard to long-term IT investment. Therefore, long-term contracts are a few in the market. That is the reason that IT firms are cautious about hiring,” Aditya Narayan Mishra, CEO of CIEL HR told the Databiz Times.
After a record hiring of employees in 2021 & 2022, the Indian IT industry has seen a shrinking of total headcount in 2023. In the financial year ended March 2024, the Indian IT industry saw a sharp fall in total headcount by more than 70,000. Big hirers like TCS, Infosys, and Wipro reduced their employee base as they focussed on improving employee utilisation levels by deploying their current bench strength.
Indian IT firms usually recruit thousands of engineering graduates through campus placements every year. In 2023, most firms skipped this exercise and stayed away from hiring freshers.
In the current financial year, things are likely to improve marginally in fresher hiring space. While companies like TCS are going to campuses, management of Wipro and Infosys said hiring of freshers would depend on the demand environment.
“Freshers have to be equipped with new skill sets for getting jobs in the current environment,” Mishra of CIEL HR said.
On the impact of GenAI impacting hiring trends, experts are of the opinion that the novel technology is definitely changing the way hiring is being done. “Employers are able to do more with lesser number of employees. That shows new technologies are improving productivity without adding employees,” said a source familiar with the matter.
However, Mishra of CIEL HR said that companies continue to hire engineers with specific skill sets. “IT companies continue to hire employees with specific skills like Generative AI, cloud, and other emerging technologies,” he said.
