IT Sector: IT Dhamal.. Jobs Ugh.. 43 Percent Down In October: If the covid epidemic has damaged all sectors, the IT sector has benefited exceptionally. Our IT companies have got a large number of new projects. Companies hire IT professionals in large numbers to complete projects within a given time frame. This is the situation in the last two years. IT companies have also taken up large selections on college campuses for those with new skills. But now things have changed. Recruitment in the Indian IT services sector has declined. Compared to the average of the nine months ending September this year, recruitment in IT and business process management companies decreased by 43 percent in October. Appointments of senior management professionals fell to 68 percent. The latest report of CIEL HR Services, which provides recruitment services to IT companies, revealed this.
The company revealed that there are many reasons for this. The main reason for this is the ongoing Russia-Ukraine war, reduced investment in start-ups, and companies reducing IT costs due to fears of economic recession. The situation is likely to remain the same till the end of this year, the report said. However, CIEL HR is of the opinion that there is a possibility that recruitment in IT companies will pick up again from the January-March quarter of 2023.
During the Corona crisis, digital projects were taken up on a large scale in the healthcare, retail, and manufacturing sectors. They are now nearing completion. There is an opinion that new digital projects at the level of the last two years may not be available to our IT companies for the next year or two years. That’s why companies reduce new hires, experts say. At that time, as the demand for IT services increased dramatically, recruitment in this sector also increased at the same level. Global IT research company ISG said that the hiring of techies, which continued vigorously for two years, has again decreased to pre-Covid levels in the third quarter (July-September) of this year. Meanwhile, IT is the sector that has done the most recruitment in the Indian job market in the last two years. Ques Corp Chairman Ajit Issac said that the recruitment of techies may be minimal for the next two quarters. This development may affect the entire job market.
Recently, several American technology companies, including Twitter and Facebook’s parent companies Meta, Amazon, and Microsoft, have laid off employees in large numbers. More than 25,000 people lost their jobs worldwide. It is known that a large number of jobs have been lost in the Indian offices of these companies. Moreover, domestic startups have also laid off more than 20,000 people this year as new investments stalled. It is expected that the layoffs in the startup sector will continue till the first half of next year. The company expects that the migration of employees may also decrease from the December quarter as the demand for IT professionals in the market decreases. In the July-September quarter of the current financial year, the migration rate in most companies was above 20 percent.
With the decrease in recruitment, software engineers are coming down. IT job consultants, HR managers, and recruiters say that the techies who used to demand a 60 to 100 percent hike while switching to a new job are now willing to offer a 20 to 30 percent hike. They stated that the reason for this is the dwindling of job opportunities in IT and the fear that hiring may almost freeze in the future. With the threat of economic recession looming, tech companies are taking precautions. Many companies have already cut rates. It said that new appointments will be stopped. Opinions are being expressed that this development may have a negative impact on campus placements of prominent educational institutions like IITs.