IT hiring picks up as mid-tier firms recruit
However, large IT firms remain cautious; Hikes & bonuses likely to remain soft in 2024
image for illustrative purpose
As many of these mid-tier IT firms are signing up contracts, the demand for talent has gone up slightly. But they are hiring highly-skilled professionals in the new technology areas - Aditya Narayan Mishra, the CEO of CIEL HR Services,told Bizz Buzz
Bengaluru: Hiring sentiment in the technology industry has improved a bit in the January-March quarter as compared to the previous period as some mid-tier IT firms have started adding employee count.
According to HR experts, though mass hirers like the large IT services firm continue to follow a cautious path in terms of new employee addition, several mid-tier IT firms are hiring people with specialised skills in the current time.
“On the overall front, things are getting better in the January-March period as compared to previous two quarters. In the IT industry, large IT firms continue to follow a cautious approach, while mid-tier IT firms have started picking up the pace a bit. As many of these mid-tier IT firms are signing up (outsourcing) contracts, the demand for talent has gone up slightly. But, they are hiring highly-skilled professionals in the new technology areas. This is happening in both contract and permanent staffing spaces,” Aditya Narayan Mishra, the CEO of CIEL HR Services, told Bizz Buzz.
After two years of record hiring, Indian IT firms had seen fall in the headcount last year. India’s top four IT companies have reported a combined headcount drop of 50,875 at the end of the fiscal third quarter from a year earlier.
Over the year, the headcount at India’s largest software services firm, TCS, dropped by 10,669. Similarly, while Infosys reported a 24,182 reduction in its headcount, Wipro posted a 18,510 fall during the April-December period. HCLTech was the only exception among the large IT firms, where the number increased by 2,486.
According to IT sector experts, mid-tier IT firms are participating in the cost takeout deal space. That is the reason for headcount addition in the lats two months.
“Contrary to expectations, many mid-tier IT firms are participating in the cost takeout deal space. Many are taking up these deals even at the cost of diluting their operating margins. So, this uptick in hiring is logical,” said an IT sector expert.
Meanwhile, staffing professional see no improvement in the salary and increments during 2024.
“As far as salary increments and bonuses are concerned, 2024 is not likely to be a better year than last year. More or less, it’s going to be at similar levels. People for most advanced skills are expected to get a better hike as the hiring in that segment has picked up. Otherwise, it is likely to be muted,” Mishra of CIEL HR said.
Some reports have earlier indicated that salary offers for India’s information technology professionals (working in mid-senior levels) have plummeted by 30-40 per cent, from around Rs 1 crore per annum they commanded a year ago. Similarly, annual increments of large IT firms have come down to 4-7 per cent compared to double digit hikes given during two previous years.
