According to research, hiring in the Indian IT services business is on the upswing after a period of stasis. IT services organizations who had paused recruitment owing to low-tech demand are now improving their hiring mandates every month, according to recruitment firms.
The data reveals a 5-6% year-on-year growth in hiring as of December, as per the ET report. Sunil C, CEO of TeamLease Digital, claimed that demand for IT talent has increased since mid-November, with customers anticipating onboarding staff in mid-January. He indicated a 5-6% increase in IT services recruiting intent, a considerable improvement over the previous two quarters when clients were unsure about their hiring plans.
Analysts anticipate a rebound in IT spending in 2024, based on an increase in hiring intent. HFS Research anticipates a 9% increase in IT budgets next year, compared to a measly 2% increase in 2023. A senior executive from a top IT services organization acknowledged that they had begun initiating lateral hiring and hiring of experienced workers to prepare for this development. They foresee the continuation of stopped programs as well as an increase in talent demand.
While total technological talent needs have increased month after month, the level of IT services talent demand remains modest. TCS, Infosys, Wipro, and HCLTech, the country's top four IT firms, reduced their headcount by 37,299 over the last two quarters due to a decrease in demand.
In August, the Financial Daily predicted a nearly 40% drop in employment among India's major IT exporters for the current fiscal year. This emphasized the current uncertainties and decreased demand for IT services. Many businesses have focused their efforts on improving cost efficiency and resource utilization to increase profitability. However, with a modest increase in IT spending projected next year, this scenario could change.
Randstad experts foresee an increase in hiring in the IT sector, but not until the second half of 2024. They anticipate slower growth in the industry compared to other sectors, with hiring peaking after the second quarter of 2024. IT attrition has slowed in recent quarters after peaking during the period of rising demand.
According to Kamal Karanth, creator of Xpheno, hiring will ramp up in April, with IT behemoths adding 10,000-15,000 recruits in fiscal Q1 2025. IT executives foresee a resurgence in demand in the United States in the second half of 2024.