Apr 04, 2024 02:33 PM IST
Tech hiring numbers have seen some improvements in March vis a vis January, but there are a number of issues that IT services companies are facing.
In some very good news for the information technology sector, it is being reported that top IT services companies are on a hiring drive and that the segment actually recorded its first rise in 20 months. Quoting data from LinkedIn and other job boards, Economic Times reported that the number of open positions accepting applications is heading north and reached 82,000 in March. To put things in perspective know that in January 2024 it was 50,000.
However, there is more to it than just that. What with slowing attrition rate, the gross hiring by these companies actually dipped 4-6% QoQ (March ending quarter), as per an analysis Economic Times got done by staffing firm Xpheno that spanned all the top tech companies including Wipro, Infosys, TCS, HCL, Tech Mahindra and more.
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“…despite the dip in gross hiring, the combined impact of lowered exits, will result in a headcount degrowth that’s lesser compared to previous quarter,” Economic Times quoted Anil Ethanur, co-founder, Xpheno as saying.
Consultants in this segment indicate that the companies’ focus is to look and give efficiency a boost, dilute their current bench and move towards automation more and more. The hiring that they are looking at doing is in promising new areas and that includes artificial intelligence. This is mostly because the companies have not seen too many indications of recovery in demand apart from some green shoots, arguably one of the most important drivers of hiring.
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What that also points to is the fact that these companies will keep their budgets from expanding and continue to exercise caution rather than boldly step body into the hiring arena.
The general direction is towards enhancing productivity and that is where automaton and GenAI will come into play. And most companies are unwilling to shun the new AI space simply because they do not want to be left behind.
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Another important factor that will ensure tight budgets in the companies is the fact that the major driver of growth, the US market, has not recovered apace as was indicated to the Economic Times by Karthik Sridharan, co-founder and CEO, Flexiple.
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