IT hiring likely to pick up in Q3

Now, what has happened that last 9 months have been low on hiring. Many operating managers are saying that there are many open positions. There is a hope that those open positions may get approved for filling up. New projects, though these are small, are also coming. So, some backfilling of positions should happen in Dec qtr -Aditya Narayan Mishra, CEO, CIEL HR Services, tells Bizz Buzz

Renewed Optimism

♦ Traditionally, hiring activity remains low during Q3

♦ October-December quarter has many holidays

♦ However, things may pick up after remaining low for last 9 mths

♦ Companies likely to start filling up vacant positions

Bengaluru: Hiring activity is likely to see some pick up in the October-December period despite being traditionally a weak quarter as staffing firms expect backfilling of some vacant positions happening during this period.

According to sources in the know, last nine months (January-September) have been a complete washout with very little hiring happening in the technology industry. Rather, several engineers lost their jobs as startups and big technology firms like Google, Microsoft, Twitter (now X), Meta and many more reduced their workforce during this period.

While Indian IT services companies have not laid off staffers in a big scale, they have adopted a policy of not filling up vacant positions arising owing to employee attrition. That was the reason that total headcount of most domestic IT firms dropped during the first quarter (April-June) of current financial year. The second quarter is not likely to be very different from the second quarter.

Experts, however, are hopeful that third quarter will see some pickup in hiring as companies have to fill up several vacant positions to reduce workload on existing staffers along with meeting the need for manpower arising from new projects.

“Traditionally, October-December quarter has a lot of holidays. Enterprises also try to optimise their year-end budgets by reducing the spend. That is the reason, hiring usually goes down. Now, what has happened that last nine months have been low on hiring. Many operating managers are saying that there are many open positions. Now, there is a hope that those open positions may get approved for filling up. New projects, though these are small, are also coming. So, some backfilling of positions should happen in October-December period,” Aditya Narayan Mishra, CEO of CIEL HR Services, told Bizz Buzz.

After a record number of employee addition in FY22, hiring momentum decelerated in FY23. The big four IT firms - TCS, Infosys, HCL Tech and Wipro - hired 66 per cent less employees at 82,679 employees in FY23 as compared to 243,258 employees hired a year ago. From the beginning of current financial year, hiring has almost halted with need-based hiring taking precedence. Aggregate staffing at Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, LTIMindtree and L&T Technology Services (LTTS), contracted by 18,000 in the first quarter of FY24.

Experts are of the opinion that recruitment activity is likely to pick up momentum from next year onwards as global technology industry and startups show some signs of bottoming out.