Curated By: Business Desk
Last Updated: August 08, 2023, 11:12 IST
August statistics reveal a 50% reduction in hiring compared to last year.
Leading companies like TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra have removed 21,838 job vacancies.
The IT industry is currently facing a host of challenges. Over the last year, companies within the IT sector have implemented distinct strategies concerning layoffs and workforce expansion. The ramifications of these actions are expected to extend into the future. According to reports, IT firms have notably curtailed their recruitment efforts during the ongoing fiscal year, with the potential for a comparable trend in the times ahead.
As per reports, the IT sector is planning to reduce the hiring rate by nearly 40 per cent in the current financial year as compared to the previous one. Economic Times reported that Xpheno, a data company headquartered in Bengaluru, has conveyed that companies have already downsized their recruitment efforts during the first quarter.
The Scissors report stated that leading companies like TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra have curtailed their hiring during the initial quarter of the fiscal year 2023-24. In total, these firms have removed 21,838 job vacancies during this given timeframe.
In contrast, last year, these companies hired a workforce of 250,000 people. Nevertheless, the current financial year is expected to generate job prospects for only 50,000 to 100,000 individuals.
The reports state that TCS hired 500 new employees during the first quarter. In parallel, international IT behemoths such as Accenture, Capgemini and Cognizant downsized their workforce by 5,000 within the same timeframe. These developments highlight potential challenges for the IT services industry in the upcoming fiscal year.
Sunil C, CEO of TeamLease Digital, said that companies are facing difficulty in acquiring new projects. This is the reason behind the decline in the recruitment rate.
IT firms are expected to decrease their hiring rate by as much as 40 per cent this year due to a shift in their employee utilisation strategy. The focus for these companies is to optimise employee efficiency and prioritise technology integration. August statistics reveal a 50 per cent reduction in hiring compared to the previous year.
Notably, both Indian and global tech leaders like Meta, Apple, Amazon, Microsoft, Netflix and Alphabet have collectively brought on board just 1,400 new employees until July 2023.
