IT Hiring of Fresh Engineers Drops to 2-decade low
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India's software export industry will see the lowest hiring of fresh engineers in over 20 years for the $245-billion sector, which is grappling with diminished global demand for technology services in the post-pandemic landscape.
The industry is set to conclude the current financial year with a recruitment of approximately 70,000 to 80,000 new engineers, the Economic Times reported.
Economic slowdown and global recession fears have set the course for reduced hiring, which has raised concerns within the sector, affecting the future of aspiring engineers.
According to staffing firms, less than a tenth of the expected 1.5 million engineering graduates from campuses this summer are anticipated to secure job placements, the report said. This substantial decline in fresh hiring signifies a notable retreat for a sector that once stood as a dominant force on college campuses, hiring a record 600,000 freshers during the technology services boom in fiscal 2022.
The waning demand for digitisation, influenced by the receding impact of Covid-19 and escalating geopolitical conflicts in Ukraine and Israel, prompted Indian IT providers to curtail fresher hiring to around 250,000 in fiscal 2023, marking the commencement of a pronounced downturn in new recruitments.
Leading IT companies like Infosys and Wipro are poised to bypass campus recruitment for a second consecutive year. Tata Consultancy Services (TCS), India's largest software services firm, has announced a reduction in fresh hires as well.
It is worth noting that at the onset of the pandemic in 2020-2021, the IT industry experienced a decline in entry-level hiring, onboarding only 85,000 employees. Over the past 12 months, the sector has witnessed a net addition of below 50,000 at the entry-level, as per data from Xpheno cited by the ET report.
This slump in fresher hiring comes as the software services industry is seeing its lowest growth in several decades. As per experts, tier 2 colleges, which are solely dependent on IT services, are likely to face a larger impact of the hiring decline. The job offers are estimated to drop by more than half.
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