Indian IT Companies Will Hire 40% Less Techies This Year (Survey Report)


Sheetal Bhalerao

Sheetal Bhalerao

Mar 30, 2023


While remaining wary of the prevailing global outlook, the IT companies in India may cut down hiring of engineers by around 40 percent year-on-year (YoY) in FY24, as per the media report citing data from TeamLease.

Hiring Remains Flat

Indian IT Companies Will Hire 40% Less Techies This Year (Survey Report)

The IT companies have added a net headcount of around 280,000 in FY23 so far, the data showed.

According to the Chief executive officer of TeamLease Digital Sunil C, the hiring in Q4 will ‘remain flat’ as attrition and growth visibility have reduced.

 Further added, “We expect a 30-40 percent drop based on the current outlook. But this could change six months down the line if companies change their growth forecasts,” Sunil added.

It appears that inflationary pressures, the Russia-Ukraine crisis, and the US and European banking spiral have made the Indian IT industry cautious. 

Besides this, the record hiring and attrition numbers in FY22 and H2FY23 have kept costs high.

There is a possibility that this quarter may see negative headcount growth among IT companies as the top eight firms hire less. 

The expansion hiring will be ‘dull, if not absent’, said Co-founder Kamal Karanth, Staffing company Xpheno in a media report.

 Accenture announced 19,000 job cuts to manage costs last week.

On the other hand, Cognizant added 5,900 jobs and the next two quarters don’t seem optimistic on net job additions.

In the current scenario, there is also less risk of people leaving their jobs and Sunil said that they cannot confirm layoff plans, restructuring may be on the cards, said TeamLease.

Working Off-shore Benefit For India

During such times if uncertainties, International companies’ off-shoring roles to India may be the silver lining. 

The backfills and replacement hiring will continue, said AR Ramesh, director – managed services and professional staffing at Adecco India. 

The skilled jobs will benefit while non-billable roles are more likely to be axed, said Mrinal Rai, principal analyst at ISG.


Sheetal Bhalerao
Sheetal Bhalerao
  • 756 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online