Fresh reports have suggested that IT companies have reduced hiring in FY23 as some suggest that this has declined over 70%!!
The IT industry had witnessed unforeseen levels of hiring during the pandemic as the increased demand for digital services during lockdowns tempted businesses to over-hire at the time at higher salaries.
However, the recruitment rates have been declining since November 2020 as attrition rates began surging since then. The hiring frenzy from the pandemic is nowhere to be seen today as hiring rates have been falling.
The top 3 Indian IT companies: Infosys, HCL Tech & TCS, have reportedly hired around 69,000 people in FY23, marking a reduction of 65% while TCS, in particular, saw a 78% reduction in hiring during FY23.
In Q3FY23, hiring declined 97% while the same fell 97.8% in Q4! Hiring, which is an indicator of demand in the sector, has been declining as macroeconomic tensions and global geopolitical concerns are the main causes.
Moreover, the recent shocks to the global banking landscape is also a major factor as the same is visible in the numbers. Bigger firms have been reporting lower than expected profits as the numbers are expected to worsen in the coming quarters as hiring will reportedly decline till September 2023.
The Nifty IT index was trading around the 27,078.85 level at the time of reporting.
- Aman Agarwal
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