After the lack of demand, layoffs, the clouds of uncertainty had started withering as the news of increase in contractual hiring came indicating improvements in the demand landscape for IT service providers.
Good Times Are On The Way For Indian It Sector
It’s out in the open that India’s IT sector has witnessed, in fact over all industry has witnessed a slow down in recent times.
But, now this positive change comes in which there is a resurgence in contractual hiring.
Hence, signaling a potential upturn in demand for IT services, as per the information provided by the staffing and recruitment firms.
This is a much awaited pleasant change which comes after a year of muted demand led to reduced hiring and even layoffs by some IT companies, resulting in a decrease in their bench strength.
It won’t be an exaggeration to say that this increase in contractual hiring often signals
improvements in the demand landscape for IT service providers.
This is usually succeeded by recruitment for permanent positions, according to experts.
Urgent Need to Replenish & Expand Workforce
The chief executive officer at TeamLease Digital, Neeti Sharma said, “With layoffs reducing this reserve (bench), the current contractual hiring rate has surged by around 40-50% compared to the same time last year,” in a media report.
Adding, “Despite the single-digit (revenue) growth for some IT services majors, the uptick highlights the urgent need to replenish and expand the workforce following these reductions, through contractual workforce for flexibility.”
Besides them, other staffing firms and recruitment service providers are also observing a resurgence in contract hiring.
When it comes to contract hiring, companies adjust their strategies based on factors like anticipated future demand, order book positions, and specific client requirements.
This change is expected as the global uncertainties stabilize , so experts anticipate an increase in IT spending.
According to the employment agency, Michael Page, they have reported a 22% year-on-year growth in
overall contracting during the January-March quarter, including within IT services companies.
“Sectors such as consumer durable, IT, ecommerce, GCCs and retail have a major demand in contract hiring,” said Pranshu Upadhyay, regional director at Michael Page India.
So far, the most sought-after skill sets in the technology staffing space are Google Cloud, data analytics, AI/ML, application development, ERP, networking, GenAI, and cybersecurity.
