Unveiling the Factors Behind the Sudden Decline in?IT?Hiring

The Indian IT landscape is highly diverse and dynamic in nature. It is also considered the powerhouse for talent and innovation, but now this sector has been experiencing a surge in hiring for several reasons.

Big IT firms are cutting down the hiring process for main entry level positions. The reason could be the uncertain demand across global markets, including the US and Europe.

Sources have suggested that the headcount at the top level 8 IT companies has fallen by over 17,500 in the December quarter, compared with the previous quarter. It is also mentioned that the total number of employees of TCS, Infosys, Wipro, HCLTech, LTIM, L&T Technology Services, Tech Mahindra and Cognizant has been down by 75,000 in a year, marking the sharpest fall in six years.

This decline, once unimaginable in an industry synonymous with rapid growth and job creation, is now becoming a reality as companies navigate a rapidly changing landscape. Multiple factors have been contributing to the downturn.

As the top IT firms grapple with these challenges, TechGig, conducted a study to uncover the reason. Over 500 techies have participated in the study and shared their thought processes on the same.

India's top IT companies are witnessing a notable decline in hiring, with cost-cutting measures emerging as the most significant factor. Almost half of the respondents (47%) have mentioned that companies are tightening their budgets, leading to a reduction in new hires. Cost-cutting measures have become one of the major reasons behind this shift.

As highlighted by 35% of the respondents, the trend towards automation is another significant factor that is contributing to the contraction of the employment process. Automated procedures are becoming more popular as a result of technological improvements.

These innovations are helping to simplify processes and improve efficiency, which in turn is lowering the need for a bigger staff. The increasing focus placed on using technology to improve operational efficiency in the information technology industry is reflected in this trend.

In addition to the reduction of costs and the use of automation, changes in work policies and internal reorganization are also having an impact on employment patterns, although to a lower degree. There were 9% of respondents who mentioned each of these criteria.

Many businesses are modifying their internal structures and work practices to better align themselves with the needs of the present market. This, in turn, is affecting the recruiting techniques that they use.

This study has successfully analysed the reasons behind the sudden shift in this IT domain. TechGig always comes up with exciting topics to engage the audience. Subscribe to our newsletter to get regular updates.