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Tech Talent Hiring Outlook? – A question which continues to linger as we enter FY24
Tech Talent Hiring Outlook? – A question which continues to linger as we enter FY24

March 31, 2023

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Global technology companies seem to be in news recently – though not for a good reason. Be it Google, Facebook (Meta) or a services company like Accenture – they have been in news for huge layoffs that they have announced globally during the last few weeks.

One of the key reasons for the same is the uncertainty that looms in the global macro environment.

  

Source: Everest Group

Also, attrition seems to be rationalising across companies, which gives them on more reason to hold their efforts to look out for new talent.

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This will also have an impact on the global tech talent demand-supply gap which is expected to ease going forward in FY24.

This whole issue is also arising because of client pressures which are now prioritizing dealing with pricing and cost pressures as the top issue and cost optimization as the top priority.

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Considering these global trends, the Indian providers seem to be playing cautious with respect to hiring which is reflected in some of the recent news articles that have come in. According to a recent news article “India’s top software companies are making up to 30% fewer campus offers this year for the 2023 batch compared with last year, as a slowdown in their biggest markets causes uncertainties on the demand environment and attrition levels stabilize. This even as around 5% of the offers given last year are yet to be honored, said placement cell heads and chancellors at engineering colleges ET spoke with…. This has led analysts to forecast that net hiring of engineers by the Indian IT companies would crash by close to half in the next fiscal year starting April compared with fiscal 2023.”

However, certain niche skills and multinational companies in other sectors, and product and engineering firms seem to be making up for it. Businesses such as Bharti Airtel, MakeMyTrip, Flipkart, Uber, PepsiCo, EY, and Deloitte are hiring STEM talent in a big way.

  • A recent ET news article highlighted the growing demand for tech talent by auto companies “Automakers including the top three, Maruti Suzuki, Hyundai Motor and Tata Motors said they expect an upswing in hiring across multiple functions including engineering, electric and electronics, product development, and operations management in the next few months.”
  • Another report highlighted an increase in the hiring of tech talent in the EPC sector.
  • Also, according to a recent survey by FICCI and Randstad of over 300 start-ups, 80% of the early-stage start-ups are looking for increasing their workforce in 2023.

Overall, one thing is sure FY23 will see a moderation of tech talent hiring in the Indian IT/technology Industry, whether other industries will be able to make up for this decline – is what we will have to wait and watch.

 

 
 

 

 


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Neha Jain
Senior Analyst

Neha Jain

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