Tuesday, May 28, 2024

Good news for IT sector job seekers! Hiring mandates up 50% in February; staffing firms see actual increase in second half of calendar year – Times of India

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Good news for IT sector job seekers! Technology talent demand surged to a new high in February, sparking hopes of recovery in the IT services job market. In February, hiring mandates for IT professionals reached 124,000, a significant 50% increase from January and 33% higher than December, according to data from Xpheno, a staffing firm.
However, it’s important to note that these mandates are indicative of future demand projections and may not all result in actual hiring, serving to create a talent pool for quick absorption.
Staffing firms are forecasting a 7-8% rise in actual IT hiring in the second half of this year, based on data from Teamlease and another recruitment firm as reported by ET.
Krishna Gautam, business head of direct hiring – IT at Xpheno, notes a positive trend in tech talent demand in the IT services sector, including software products and tech startups, marking the first growth phase this fiscal year. He anticipates a further increase in IT talent demand to 150,000 in March.

Keeping Watch of IT Hiring

The latest recruitment statistics include various domains such as IT services, software products, and tech startups. However, a significant portion of this demand arises from the IT services sector, which traditionally engages in substantial hiring activities, except for the anomaly observed in 2023.
In a recent report, it was highlighted that the overall recruitment of freshers for the $250-billion IT industry in the current fiscal year, ending March 31, 2024, is anticipated to decline by 60%-65% compared to the previous year. This suggests an intake of 70,000-80,000 fresh engineers, marking the lowest recruitment level in over two decades.
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Nevertheless, there are indications of a rebound expected in the latter half of the current calendar year.
Teamlease, a Bengaluru-based recruitment firm, projects an 8.2% rise in hiring activity in the second half of 2024, driven by anticipated economic recovery, increased IT spending, and funding in the startup sector.
Xpheno’s Gautam highlights that the surge in demand is fueled by both tier-1 and tier-2 players in the services sector, particularly in digital and AI domains. The recent uptick in hiring follows a substantial reduction in headcount at major software exporters.
Notably, the industry saw a net addition of 60,000 jobs in FY23 until February, a significant drop from the previous fiscal year. The rebound in IT hiring is attributed to the growing need for specialized skills in areas like cyber security, robotic process automation, and generative AI.
Entry-level and mid-junior level job openings in the IT services sector are on the rise, indicating a shifting trend in demand. While mid-senior level positions still account for 60% of the active demand, openings for entry-level and mid-junior roles have increased to 30% of total demand.
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Despite the recent growth, current demand from the tech sector remains below the levels seen in 2022. Siva Prasad Nanduri, CEO of DTL (Diensten Tech Ltd), foresees a significant increase in contingent hiring in India, driven by the growth of global capability centers in the country.
With approximately 5 million IT jobs in the market, there is a notable rise in contingent hiring, expected to increase from 4% to 5% to 7% this year, reflecting the evolving landscape of employment in the industry and the abundance of English-speaking IT talent.

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