Hiring in Indian IT sector likely to see 8-10% growth in 2024: Report

The Indian IT sector, which has experienced a contraction in hiring due to the global economic slowdown and funding winter, is expected to see a positive turnaround with an 8-10% increase in hiring in 2024, according to a new report released on Wednesday. 

The report published by staffing firm NLB Services comes at a time when the technology industry around the world is facing an economic slowdown. Earlier this week, some of the largest tech companies in the world, such as Facebook (Meta group of companies), Amazon, Apple, Microsoft, Netflix, and Google (Alphabet) registered a 90 per cent decline in active job postings in India in 2023 when compared to the last year. 

Citing data compiled by Xpheno, a staffing firm. head of workforce research at Xpheno, Prasadh MS said, “with the technology sector remaining cautious, forecasts for the IT Services annual closures on talent aren't looking encouraging going into 2024.  

With attrition under control for most players, and expansion hiring not underway, the hiring action will remain subdued for the quarter ending March 2024. Hiring action should be expected to pickup later in the quarter ending June 2024. Amidst the current situation of extended headwinds, both lateral and fresh talent in IT should brace for an extended hiatus. 

The NLB Services data showed I contrast, overall, hiring in the IT sector is projected to surge by 12-15 per cent in CY 2024, primarily due to the rise in global capabilities centers (GCCs) and the stabilisation of the global economy, as stated by talent solution company NLB Services. "In terms of quarters, the first quarter will see an average growth in hiring of 8-10%, followed by a demand increase of 12-14% in Q2 and Q4," said Sachin Alug, CEO of NLB Services. 

The IT sector is estimated to have experienced a growth of 40-45 percent in job opportunities in 2023 compared to 2022. Furthermore, hiring is expected to surge by 15-20 per cent in 2024. However, due to the global recession and changes in business strategies, the Indian IT sector faced a decline during the initial quarters of this year. In fact, in Q1 FY24, IT experienced the sharpest decrease in headcount in the past three years, as companies felt the impact of the project slowdown, according to the report. 

"Nevertheless, the third quarter of this fiscal year brings a favorable outlook. Promising prospects are anticipated in green technology, electric vehicles, and an increased focus on AI and cybersecurity," informed Alug. In Q2 FY24, key IT firms reported an average increase in net profits of 3-10%. 

The positive growth trajectory was largely influenced by IT players securing significant new contracts, expanding long-term agreements with existing clients, and increasing investments in technology, among other factors. 

"Despite the initial slowdown, some skill sets continued to be in high demand in this segment, including software development (with a 28% demand), SAP expertise (12% demand), automotive design (14% demand), and testing skills (12% demand). 

"Next year, some of the most sought-after IT skills are expected to include AI/ML experts, DevOps specialists, full-stack developers, cybersecurity experts, Blockchain developers, Cloud architects, UI/UX designers, and more. 

"Overall, hiring in the IT sector is projected to surge by 12-15% in CY 2024, primarily due to the increase in global capabilities centers (GCCs) and the stabilisation of the global economy," stated Alug.