The data shows a 5-6% year-on-year increase in hiring as of December, according to an ET report.Sunil C, the CEO of TeamLease Digital, stated that there has been an increase indemand for IT talent since mid-November, with customers expecting onboarding talent in mid-January. He revealed a 5-6% increase in IT services hiring intent, which is a significant change from the previous two quarters when customers were uncertain about their hiring plans.
TeamLease data reveals that the most in-demand skills in the IT services sector include programming languages like Python, Java, and JavaScript, as well as expertise in databases, cloud computing (AWS, Azure), project management, and agile methodologies. Software developers, network administrators, cloud architects, and cybersecurity specialists are some of the roles that companies are looking to fill.The IT services industry has implemented salary increases ranging from 10% to 15% for these specialized roles, reflecting the difficulty in finding talent with the required skills and the need to retain them.
Analysts expect a revival in IT spending in 2024, as indicated by the improvement in hiring intent. Research and analysis firm HFS Research predicts a 9% growth in IT budgets next year, compared to a mere 2% growth in 2023.
To prepare for this growth, a senior executive from a top IT services firm confirmed that they have begun initiating lateral hiring and hiring of experienced professionals. They anticipate the resumption of paused programs and expect an increase in talent demand.
IT hiring intent
While overall technology talent demand has improved on a monthly basis, the volume of IT services talent demand remains low. A slowdown in demand led TCS, Infosys, Wipro, and HCLTech, the top four IT companies in the country, to reduce their headcount by 37,299 over the past two quarters.
In August, the financial daily had indicated a projected decrease of nearly 40% in hiring among India’s leading IT exporters for the current fiscal year. This highlighted the prevailing uncertainty and reduced demand for technology services. To enhance margins, many firms have directed efforts towards refining cost efficiency and resource utilization. Yet, there might be a shift in this scenario with a slight increase expected in IT expenditure next year.
Experts at Randstad predict an uptick in hiring in the IT sector, but not until the second half of 2024. They expect the industry to experience slower growth compared to other sectors, with hiring peaking after the second quarter of 2024. IT attrition, which increased during the period of heightened demand, has tapered off in recent quarters.
Read From ET | IT hiring trend
Kamal Karanth, cofounder of Xpheno, anticipates that hiring will pick up from April onwards, with IT bellwethers adding 10,000-15,000 new hires in fiscal Q1 of 2025.
IT industry executives also predict a renewal in demand in the US during the second half of 2024.
