Over the past couple of quarters, the information technology (IT) industry has been at the cusp of many macroeconomic headwinds including a looming global recession. However, with the global economy gradually stabilising and the increased impetus towards digitisation and technology integration, IT bellwethers are projected to experience significant overall growth, said a new analysis by talent solutions company, NLB Services.
It added that some of the key Indian IT firms have reported a 3%-10% average increase in their net profits. The positive growth trajectory is largely influenced by IT players securing strong new wins, expanding multi-year renewals with existing clients, growing investment into technology, etc.. Many more organisations are focusing on augmenting their talent pool as they anticipate a demand revival across the industry for 2024-25.
The analysis highlighted that in Q2, prominent IT corporations have reported a sustained decline in attrition rates. Nevertheless, there has been a reduction in overall headcount within these enterprises. This decrease is attributed to a deliberate recruitment approach aimed at acquiring highly capable fresh graduates and subsequently investing in their skill development through appropriate training initiatives.
Prospective campus recruitment activities could potentially be impacted during the subsequent quarter, primarily due to project cancellations and an unpredictable demand landscape, as reported by one of the IT giants during the Q2 result.
Sachin Alug, CEO, NLB Services, said, “With opportunities emerging in the spheres of green technology, electric vehicles, and a heightened focus on AI and cybersecurity, IT firms are eagerly seeking skilled professionals to capitalise on these prospects. Moreover, IT companies are projecting a robust hiring outlook of nearly 8-10% in Q3.”
“The industry anticipates that as macroeconomic conditions stabilise, these companies will optimise their workforce strategy, thereby leading to an increased demand for IT professionals across critical domains such as cybersecurity, data science, AI/ML, and blockchain amongst others. Many tech firms are also aligning their focus on improving gender parity, enabling the re-entry of more women into the workforce and expanding their workforce’s pedagogies,” Alug added.