According to a media report that cites data from TeamLease, IT companies in India may reduce their hiring of engineers by approximately 40 percent year-on-year (YoY) in FY24, while maintaining caution towards the current global situation.
Hiring Remains Flat
As per the data, IT companies have hired approximately 280,000 employees in FY23 until now.
However, the Chief Executive Officer of TeamLease Digital, Sunil C, stated that hiring may remain stagnant in Q4 due to reduced growth visibility and attrition.
He further added that there could be a 30-40 percent decline in hiring based on the current outlook, although this may change if companies adjust their growth forecasts in the next six months.
The Indian IT industry seems to be exercising caution due to the impact of inflationary pressures, the Russia-Ukraine crisis, and the US and European banking spiral.
Additionally, the high hiring and attrition rates recorded in FY22 and H2FY23 have resulted in increased costs for the industry.
As per a media report, there is a chance that the top eight IT firms may reduce their hiring in this quarter, leading to negative headcount growth.
Co-founder of staffing company Xpheno, Kamal Karanth, stated that any expansion hiring is likely to be dull or absent.
Last week, Accenture revealed its plan to cut 19,000 jobs to control costs. In contrast, Cognizant hired 5,900 employees, but the next two quarters don’t appear promising for net job additions.
With the current situation, the risk of employees leaving their jobs has decreased, and according to Sunil from TeamLease, while layoffs cannot be confirmed, the possibility of restructuring remains a possibility.
Working Off-shore Benefit For India
Amidst the prevailing uncertainties, the offshoring of roles by international companies to India may provide a glimmer of hope.
According to AR Ramesh, the Director of Managed Services and Professional Staffing at Adecco India, backfills and replacement hiring are expected to continue.
Additionally, Mrinal Rai, the Principal Analyst at ISG, suggested that skilled jobs are likely to benefit while non-billable roles may be eliminated.
