IT companies likely to slash campus hiring by 20% in next financial year: Report
With fears of impending recession in the United States and Europe, Indian IT companies are likely to slash campus and entry-level hiring by as much as 20 per cent in the next financial year. IT companies have already slowed down hirings and onboarding process, a report in Mint stated.
Despite strong indicators in the software market, Indian tech companies have been facing high attrition and narrowing margins. Its impact is most likely to be faced during the hiring of freshers, the report added.
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Onboarding delays
There have been reports that many people who were sent offer letters as much as six months ago have not yet received a joining date. Many of these candidates took to social media to raise the issue.
Tech graduates with employment offers from large companies, including Wipro, Infosys, and Tata Consultancy Services, are scouting for other jobs as onboarding delays have stretched beyond six months. Keeping this in view, students and engineering colleges are worried that the delays will also impact coming campus placements.
The job offers were made before February 2022, when economic activity was gaining post several waves of the Covid-19 pandemic. However, the Russia-Ukraine war has impacted inflation and exacerbated supply chain issues.
Wait and watch
In the initial phase of the pandemic, companies worked hard to meet the digitisation needs. This led to more hirings and soaring salaries. Now, with the lockdown restrictions being removed, companies are waiting to deploy the senior staff in other projects for the company’s profitability.
“In FY22, about 470,000 employees were onboarded in the IT and IT-enabled services sector. In FY23, we estimate 350,000-370,000, but in FY24, if the recession continues, the numbers will drop. But at best, it will be similar to FY23,” Saran Balasundaram, founder of the tech recruitment firm, HanDigital told Mint.
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In FY23, Infosys is expected to hire 50,000 people from college campuses while Wipro and TCS are likely to hire 30,000 and 40,000 people, respectively. Tech Mahindra Ltd will recruit 15,000 and HCL Technologies Ltd is expected to hire 45,000, the report said.