IT Hiring Freeze: Newly minted engineers must prepare for navigating uncharted waters

In the 90s era a half of middle class Indian parent had one dream : to see their child becoming an engineer. Being an engineer was a promise of a secure future which came with a stamp of societal approval. Resurgence of the IT Industry almost helped engineers reach a demi god status. While two decades ago the demand for engineers were around 400000 youth annually the availability was just about 200000 mark. It all changed within the past decade and while demand has not gone up and in recent times have been rather volatile the availability of engineers across all specialisation and across length of breadth of the country was nearly four times the demand. Surprisingly no matter the area of specialisation be it mechanical, chemical, electrical, electronics or computer – everyone had only one desire – to work for an IT Company. Air Conditioned workspace, the modern office strappings of lavish cafeteria, overseas travel, innumerable benefits was too much of an attraction for the traditional industries who recruited engineers could compete. The Life of an Engineer changed forever in India since.

However, this seduction of the IT sector has been accompanied by significant volatility, ranging from excessive hiring to recent layoffs within the IT sector. Notably, many IT companies have made the unconventional decision to halt hiring altogether. In this piece, I will delve into the growth of engineering aspirants in India, the rise and fall of the IT industry, and how engineering graduates can navigate a hopeful and bright future amidst this ever-evolving landscape.

But before that lets try and understand the spike in Engineering Aspirants over the years. The journey begins with the staggering growth of engineering aspirants in India over the past two decades. This phenomenon can be attributed to various key factors. The Indian education system places great emphasis on science and engineering disciplines. According to the National Institutional Ranking Framework (NIRF), the number of engineering colleges in India more than doubled, increasing from around 1,500 in 2000 to over 3,000 by 2020. India witnessed an exponential jump in private engineering colleges who were ready to provide a degree to the highest and parents were willing given their perceived return on the investment.

But what led to this spike?

The surge of engineering aspirants is intrinsically tied to the global dominance of the Indian IT industry. India emerged as a global hub for software development, IT services, and business process outsourcing. As per a report by the National Association of Software and Service Companies (NASSCOM), the Indian IT industry grew at an annual rate of 12-14% in the 2000s, creating a soaring demand for engineering graduates across various specializations. With the promise of high-paying jobs, job security, and global exposure, the IT sector became an alluring career choice for the youth.

What did not go as per plan?

However, in the last six to seven years, the Indian IT industry experienced significant volatility. It transitioned from a phase of excessive hiring and rapid expansion to a period of sudden layoffs. Several factors contributed to this instability, including the rise of automation, a shifting global economic landscape, and the increasing protectionism in certain markets. Reports from The Economic Times and The Times of India and Insights shared by Staffing Organisations like TeamLease Digital highlighted the adverse effects of these layoffs on thousands of IT professionals. The IT sector, once seen as a safe and steady career path, was now fraught with uncertainty.

What is situation on ground?

Adding to the uncertainty, many IT companies have recently announced their decision to cease hiring altogether. This shift can be attributed to a confluence of factors, including the ongoing automation of routine tasks, the global pandemic, and evolving client expectations. Prominent companies such as TCS, Infosys, and Wipro have implemented this policy shift, further intensifying the uncertainty surrounding the job prospects for engineering graduates.

What can today’s new engineers prepare for?

The World of tech has changed forever. Tech shall never earn back its status of being the Net Employment Generator for India as it is counter intuitive for their business model while it will continue to grow. Hence if you are an engineer or parent of an engineer it is time for recalibration of your future goals. The traditional approach of focusing solely on IT may no longer be the ideal route. Instead, diversifying skill sets and exploring sectors outside of IT are crucial steps in ensuring a secure career path. And unlike the past India has covered quite the distance in emerging as more than just an IT miracle. Each sector outside of IT is making steady progress and displaying steady demand for talent and especially requires the expertise of budding engineers who so far have been less accessible to them. They may not promise air conditioned offices however they are attractive and remunerative.

India's burgeoning economy and expanding industrial landscape offer a wealth of opportunities for engineers beyond the IT sector. Let's explore some of these alternative sectors and the demand for engineers within them, as supported by data from the Indian Brand Equity Foundation (IBEF):

1.???? Automotive and Manufacturing: The automotive and manufacturing sectors are poised for growth, and engineers are essential for innovation and design. India is on its way to becoming a global manufacturing hub, with a CAGR of 12.4% in the manufacturing sector.

2.???? Chemical and Petrochemical: The chemical industry, with a growth rate of 9.1%, requires engineers to work on sustainable practices and new product development.

3.???? Construction and Infrastructure: India's infrastructure development is in full swing. Engineers play a crucial role in designing and managing large-scale projects. The construction sector is expected to reach USD 738.5 billion by 2022.

4.???? Robotics and Automation: As automation continues to expand into various industries, engineers specializing in robotics are in high demand. The Indian automation market is projected to grow at a CAGR of 10.3% from 2021 to 2026.

5.???? Healthcare: The healthcare sector offers opportunities for biomedical engineers. The healthcare market is expected to reach USD 372 billion by 2022, and engineers play a pivotal role in the development of medical devices and healthcare technology.

6.???? Renewable Energy: The renewable energy sector is growing rapidly, with the government's emphasis on sustainability. India is targeting 40% of its energy capacity to come from renewables by 2030. Engineers are integral in achieving this goal.

There is change all around and hence I would urge today’s new engineers to adapt and demonstrate the ability to apply engineering skills to different sectors. Diversify and explore new opportunities, to stay relevant and secure your future possibilities. The recent decision of IT companies to halt hiring is just one chapter in the ever-evolving story of the job market. Making fungible use of one's skill set and exploring sectors such as automotive, manufacturing, chemical, construction, robotics, healthcare, and renewable energy is not statement of hope but factual representation of where Engineers and their skills are, on ground, needed. And hence rather than spend any more energy worrying and obsessing about the fall of IT opportunities one should explore newer frontiers and prepare for it. If anything the world has taught through Covid and the uncertainties that followed – nothing is certain hence make yourself agile, open and be prepared to learn and reskill all the time. What’s gold today can turn to ashes tomorrow hence stay flexible and adaptive.

-??????? Rituparna Chakraborty, Co-Founder, TeamLease Services Ltd & Independent Director

#engineers #layoffs #ITlayoffs #jobs #campusplacements #hiring #opportunities

Previously published in https://www.moneycontrol.com/news/opinion/it-hiring-freeze-newly-minted-engineers-must-prepare-for-navigating-uncharted-waters-11625261.html

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