India will see a drop in the hiring of engineers in the coming days. IT industry is expected to reduce the employment of engineers by around 40 percent year-on-year (YoY) in FY24 as corporation fear worsening global economic conditions. According to a The Economic Times report, citing data from TeamLease, the statistics come after companies reported record hiring and layoffs during the fiscal year 2022 and the first half of fiscal 2023.
So far in FY23, IT companies have hired around 280,000 workers, according to the data. However, due to the low growth environment globally, hirings in Q4 will remain low. “We expect a 30-40 percent drop based on the current outlook. But this could change six months down the line if companies change their growth forecasts,” Chief executive officer of TeamLease Digital Sunil explained.
The Russian-Ukrainian conflict, the US and European banking crises, and inflationary pressures have all made the Indian IT industry wary. Moreover, record levels of attrition and hiring in FY22 and H2FY23 resulted in high expenditures. According to staffing agency Xpheno, the top eight IT corporations may reduce hiring this quarter, which might result in negative headcount growth among organizations.
Last week, Accenture announced 19,000 job cuts to control costs. TeamLease said that the chance of employees quitting their positions is lower in the present environment, whereas Sunil indicated that while they cannot confirm layoff intentions, restructuring may be in the works.
The one bright spot in this market situation may be the offshoring of positions to India by international corporations. Backfills and replacement recruiting will continue, according to AR Ramesh, director of managed services and professional staffing at Adecco India, as quoted by ET.