Only 1.55 lakh techies likely to be hired in IT sector: Report

Nearly 1,55,000 lakh freshers are likely to be hired in the IT/Tech sector this fiscal year, compared to 2,30,000 lakh freshers in the previous fiscal year, according to tech staffing firm TeamLease Digital, which published a report on the outlook for fresh IT/engineering graduates in the fiscal year 2023-24 on Tuesday.
 
According to the report, with approximately 1.5 million engineering graduates actively seeking IT/Tech roles, muted market sentiments and intensified skills evaluation mechanisms have created a turbulent landscape. The findings reveal that only 45% of applicants currently meet the well-rounded proficiency expectations, showcasing the widening skill gap.
 
As major IT companies freeze fresher intake, alternate sectors are opening up demand. Global Capability Centres (GCCs) and non-tech sectors like banking, financial services and insurance (BFSI), Communication, Media and Technology, Retail and Consumer Business, Life Sciences and Healthcare, Engineering Research and Development, and Energy and Resources have expanded entry-level hiring, thereby exhibiting a noteworthy shift in the hiring landscape, the report said.
 
In October, based on hiring numbers shared by India’s top three IT services providers, TCS, Infosys, and HCLTech saw an overall decline of 16,162 employees in their total headcount in the July to September quarter.

Infosys has said that it will not conduct any more campus hiring this year while TCS has admitted to delaying onboarding for entry-level positions though it continues to engage with the candidates. HCLTech, meanwhile, has said that it shall hire nearly 5,000 freshers in the remaining fiscal.
 
The decline in hiring has been going on for at least six quarters, with the hiring numbers dropping to negative for top tech services firms in the last two quarters. The reduced numbers come against the backdrop of many macroeconomic headwinds including a looming global recession and also amid fears that the inclusion of artificial intelligence (AI) may limit the number of basic coding job opportunities.

Industry veterans are emphasizing the urgent need for upskilling and training interventions to address the market needs holistically. 

Krishna Vij, Business Head of TeamLease Digital, said, "The tech world is evolving rapidly, and we need to keep up. It is not just about companies broadening their hiring horizons, but also about ensuring that the talent pool of our country is ready for it. A united front can be forged through the collaborative efforts of the industry, academia, and government, leading to relevant programs and curricula being designed. Government initiatives play a pivotal role in supporting skill development and research projects aimed at tackling industry-specific challenges. This is not a one-off effort but a collective movement to nurture talent at scale and meet the industry's changing needs."
 
In the current educational landscape, institutions must prioritise the integration of industry-specific training programs into their curriculum. These programs can help equip the freshers with the latest technological skills and enhance their overall employability, said TeamLease. The staffing firm emphasized taking up courses including Data Science with R Certification, SQL Certification Training, Postgraduate Programs in AI, Cybersecurity and Machine Learning, Digital Marketing, as well as Professional Certificate Programs in Blockchain and Web Design Certification, among others for techies to stay afloat.