IT sector hiring outlook: What analysis of data on Infosys, TCS, Wipro, HCL suggests

Apr3,2024


Recruitment in IT sector Outlook: In a positive development, top IT services companies have seen an increase in active hiring for the first time in 20 months. The number of vacancies available to apply for rose from a low of 50,000 in January this year to 82,000 in March, according to an analysis of data from LinkedIn and other major job boards.
However, despite this increase in active hiring, the collective gross hiring by these companies declined by 4-6% quarter-on-quarter in the quarter ended March, an ET report said. The analysis was conducted by staffing firm Xpheno. The focus was on talent movement patterns in the January-March period, focusing on major companies such as Wipro, Infosys, tcs, hclLTI Mindtree, L&T Technology Services, Tech Mahindra, and Cognizant.
Anil Athanur, Co-Founder, Xpheno, highlighted that while there has been a declining trend in gross hiring for the last eight quarters, the current surge in active demand indicates a return of hiring to capacity in the IT services sector.

IT companies are playing it safe

IT companies are playing it safe

Looking to FY25, industry experts emphasize the need to focus on bench strength, automation, efficiency improvements and targeted hiring in specialized areas such as AI and GenAI.
Nitin Bhatt, partner and technology sector leader at EY India, said caution will be exercised by IT services leaders to expand margins amid weak overall demand signals.
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Bhatt further said that clients are hesitant in allocating new budgets due to the ongoing macroeconomic uncertainty. There will be an emphasis on specific skills such as cyber, digital and AI for recruitment, as tech companies collaborate with end customers to reduce costs, improve efficiency and increase productivity.
Demand for top roles is concentrated across digital and cloud skills domains, including Cloud Architects, SAP Technical Architects, Kubernetes SMEs, Azure and GCP experts, Hadoop Engineers and Full Stack Engineers.
Rishi Jhunjhunwala, senior vice president, IIFL Securities, said that although there has been no significant increase in demand, expectations for revenue growth in FY2025 may be subdued. However, hiring is projected to increase marginally following manpower optimization efforts and a hiring freeze last year.
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The data reveals the key IT services firm Collectively their headcount has declined by 75,000 over the last three quarters. The objective of this hiring action is to rebuild lost talent and increase capacity for the upcoming financial year.
Karthik Sreedharan, co-founder and CEO of tech-driven hiring platform Flexiple, has predicted a continued decline in the IT services hiring market for this financial year, citing the slow recovery of the US market.



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