Hiring in India’s IT sector shows slight revival: Report

The report noted a 6% increase in the overall IT hiring activity month-on-month for freshers

Hiring in India’s IT sector shows slight revival: Report

The report noted a 6% increase in the overall IT hiring activity month-on-month for freshers

Following months of slowdown in hiring activity, Indian IT industry is inching towards recovery, albeit slowly, as the industry saw an uptick of 3% in job demand on a month-on-month basis, as per the latest report published by talent management platform foundit (earlier Monster.com) on job trends for the month of November 2022. 

However, compared to a year earlier, when companies were aggressively hiring tech talent with wage hikes, bonus and incentives amidst high attrition, IT hiring noted a dip of 14% year-on-year, according to the staffing firm. 

The platform noted a 6% increase in the overall hiring activity month-on-month for freshers. However, there is a noticeable dip in yearly hiring (3%), it said. Hiring for freshers have flattened in tech sector, as against banking, financial services and insurance (BFSI) and Fast-moving consumer goods (FMCG), to name a few, said the hiring firm. 

Meanwhile, data for jobs posted on the foundit portal showed that the IT sector offers the highest on boarding salary to freshers, with the range starting from 3,44,922 a year and going up to 6,71,236. This is followed by the Logistics sector ( 311,474 to 5,76,252) and the BFSI industry ( 3,06,102 to 5,43,020). 

Further, demand for mid-senior level professionals (7-10 years) exhibited a 5% incline month-on-month while showing a 9% dip y-o-y. This, according to the recruiter can be attributed to companies increasingly preferring to hire trained professionals for specialised roles to improve efficiency and productivity. 

“Despite a slowdown in hiring for tech talent for the past few months, several industries, such as education and healthcare, are increasingly relying on technology to drive efficiency and productivity, indicating skilled talent will always be in demand," said Sekhar Garisa, CEO – foundit (previously Monster APAC & ME). He added that overall, the outlook for the Indian job market is positive and will only continue to do better in the coming months." 

Notably, the country’s tier 2 cities continue exhibiting a positive hiring outlook, said the report. With rapid infrastructure development, improved connectivity and the availability of skilled resources, the tier-2 cities are thriving in the Indian job market. Hiring in Chandigarh (+8%), Baroda (+5%) and Ahmedabad (+3%) continue to be on an encouraging trajectory on a month-on-month basis. 

While hiring sentiments have slightly improved, findings of another survey conducted by HR services company CIEL HR published last month revealed that hiring in India’s top 50 IT and BPM firms has declined by 41% overall and for senior management roles, it has dropped by 61% in September-October. 

The report said that the sector has witnessed a slump due to margin pressures amidst fears of an economic downturn in global markets like the US and Europe. The report however said, while the global tech industry is also going through hiring freeze and layoffs, India’s IT industry is confident of rallying back to strength soon. 

“The demand for IT Talent which was at its peak during the first half of the year saw companies go into a hiring spree," said Aditya Narayan Mishra – Managing Director and CEO, CIEL HR Services, adding that “companies were ready to spend the extra buck to on-board resources with the right skill".