Employment slowdown in the IT sector in the coming years

New Delhi : IT companies may see up to 20 per cent reduction in campus placements and freshers in the next financial year. Indian IT companies’ recruitment process has already slowed down due to fears of recession in the US and Europe.

Indian IT companies are currently grappling with the growing problem of attrition. Big IT companies are constantly making efforts to recruit skilled and talented employees. Companies are also ready to pay bigger pay scales to such employees. The shortage of skilled and experienced employees has become a major challenge for these companies. Startup companies in the country have also gained momentum. As these technology entrants provide services to the customers at low rates, their business is growing. But it affects big companies. Due to this, the possibility of reduction in employment of new people this year has increased.

Infosys plans to recruit 50 thousand new employees in the current financial year 2022-23. Wipro and TCS are likely to hire 30,000 and 40,000 people, respectively. Tech Mihadra is expected to employ 15,000 and HCL Technologies is expected to employ 45,000. Many who sent job offers six months ago have not yet been asked to join the company. Many candidates have discussed this issue through social media. After the Corona wave stopped, companies had issued job offers before February 2022, but adverse factors such as the impact of the Ukraine war and inflation on the profits of companies suddenly came to the fore.

How many jobs will be lost?

According to industry estimates, around 4,70,000 manpower was to be absorbed in the IT and allied services sector in FY 2022-23. This estimate was reduced from 3,50,000 to 3,70,000 for the following financial years. But in 2023-24, the numbers are likely to fall further if the fears of a slowdown persist, said Saran Balasundaram, founder of recruitment firm Hand Digital.

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