IT hiring on cards on renewed project deals

During period of low growth, IT firms usually curtail their fresher intake. That reduces some of the training requirements. Secondly, companies reduce their dependence on external training firms and do some part of it on their own. That also reduces some the training budget. In that way, last year saw some adverse impact. But we are beginning to see companies reversing their paths - Giridhar LV, Founder &CEO, Nuvepro Technologies, tells Bizz Buzz

Bengaluru: Training, reskilling and hiring activities in the Indian IT industry are turning the corner after a lull seen in 2023 when IT firms not only reduce their headcount addition to the minimal level, but also cut spend on training and reskilling activities.

According to executives of training and staffing firms, they are witnessing more deals and enquiries from IT services companies and GCCs (Global Capability Centres) since the beginning of this year, which has improved over the months so far.

“During period of low growth, IT firms usually curtail their fresher intake. So that reduces some of the training requirements. Second thing, companies reduce their dependence on external training firms and do some part of it on their own. That also reduces some the training budget. In that way, last year saw some adverse impact. But we are beginning to see companies reversing their paths and they are starting to invest in training as well,” Giridhar LV, Founder &CEO of Nuvepro Technologies told Bizz Buzz.

Nuvepro counts companies like Tata Consultancy Services, Wipro, Capgemini, LTIMindtree, Upgrad, and NIIT as its clients. In the last five years, most Indian IT firms have been engaged with reskilling of their employees in key digital technologies like artificial intelligence (AI), machine learning (ML), data analytics, cloud computing and many more related domains. While some parts of these reskilling initiatives are done in-house by IT firms, the rest is implemented through external partners like skilling firms.

The revival in the skilling efforts is linked to uptick in the hiring sentiment in the IT industry. In recent months, IT firms have again started visiting engineering college campuses for fresher hiring. Similarly, replacement hiring has again begun with many IT services companies hiring laterals.

Many IT consultancy firms have highlighted that domestic IT companies may fall behind the curve due to fall in headcount in the last three quarters of FY24.

“We have seen more enquiries and engagement from IT services firms in recent months. After a low demand period in 2023, we have already seen uptick in demand for our AI platform for hiring process,” CEO & Cofounder of Incruiter, Anil Agarwal told Bizz Buzz.

Incruiter has developed AI-based video interview platform that helps companies to screen candidates before final interviews. Agarwal said demand for their AI-platform indicates revival in hiring sentiment.

After record hirings in 2021 & 2022, last year saw drastic drop in hiring activity. Employee count of most of the industry players fell in 2023, which has now showed some signs of revival.