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Informist, Monday, Jul 22, 2024

MUMBAI – Hiring in the information technology sector is unlikely to pick up significantly in 2024-25 (Apr-Mar), after a considerable slowdown in the previous financial year, according to the Economic Survey for 2023-24. 

"Even if hiring does not decline further, it is unlikely to pick up significantly (in 2024-25). However, leveraging the initiatives taken by the government and capturing the untapped potential in emerging markets, exports of business, consultancy and IT-enabled services can expand," the survey stated.

In February, technology industry body Nasscom had said the sector would create 60,000 jobs in 2023-24, compared to 270,000 jobs the industry had created in the previous financial year. Job creation was affected as the industry faced demand pressure triggered by a macroeconomic slowdown in the key markets of the US and Europe.

Demand in the IT industry grew significantly just after the outbreak of the COVID-19 pandemic as companies globally needed to build their digital capabilities against the backdrop of large-scale restrictions on the physical movement of people. Central banks, particularly the US Federal Reserve, driving interest rates to near zero further fuelled this spending.

However, over 2022 and 2023, interest rates rose sharply as central banks faced unusually high inflation. This raised concerns that major global economies could slip into recession, leading to a pause in discretionary technology spending.

Now, with technology spending expected to return, some IT companies are expected to ramp up hiring to an extent. In the June quarter, India's largest information technology company Tata Consultancy Services improved its total headcount by 5,452. In April, the company had said it aims to hire 40,000 freshers this year. Other companies such as Infosys, Wipro and HCL Technologies also plan to hit the campus trail and hire 10,000-20,000 freshers in 2024-25.  End

Reported by Darshan Nakhwa 

Edited by Avishek Dutta

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