The IT industry may see job growth again in the second half of FY25
For the last five quarters, the IT industry has seen a decrease in the number of employees; however, forecasts indicate that recruiting activity will pick up, with an 8–10% increase anticipated this year.
Experts say that there is hope for IT employment in the second part of this fiscal year. According to Kapil Joshi, Deputy CEO of Quess IT Staffing, “the global hiring landscape within the IT industry is forecasted to experience a surge of 12-15% in CY2024, driven primarily by the expansion of GCCs (global capability centers) and the stabilization of the global economy.”
Together, TCS, Infosys, and Wipro lost 63,759 workers in FY24—nearly two decades later. Additionally, this year, no IT company other than TCS is anticipated to visit campus.
During the Q4 results press conference, Infosys CFO Jayesh Sanghrajka said that the company’s recruiting strategy has evolved over the last several years, with a focus on campus hiring that is now more nimble. Additionally, IT companies are increasingly concentrating on trainee utilization.
There are several reasons for the decline in the number of employees at prominent information technology businesses in India. First, the need for IT services is unclear in many global markets, especially in the US and Europe, where customers’ cautious spending has resulted in a decline in demand. The headcount loss of almost 17,500 people among the top 8 IT businesses in the December quarter alone is indicative of this trend, according to Joshi.
He said that geopolitical tensions like those between Russia and Ukraine and Israel and Hamas have also contributed to the decline.
According to Nirupama VG, Founder of ADAstra Consultants, 30% of workers worry that technology would replace their jobs as a result of the fast adoption of automation and AI technologies. Employment trends have been impacted by the increase of remote work, with 28% of office workers worldwide working remotely.
Despite early stumbles, the future seems bright. More than 1.5 million people are employed by the more than 1600 GCCs in India, which is indicative of the strong need for IT specialists. According to Nirupama, there is a predicted 89% growth in the worldwide workforce needed in the cybersecurity industry by 2023, indicating the sector’s potential.
