Indian IT Sector Witnesses Softening Demand, Raises Concerns About Hiring
Propelled by digital transformation India is emerging as a global hub for technology and innovation, with its IT sector playing a pivotal role. But despite the healthy support, Indian IT services industry witnessed a softening demand, a 3.5 per cent growth in FY 2024, significantly lower than 9.2 per cent YoY growth in FY 2023, according to a recent ICRA report.
The overcast scenario subsequently underlined the study’s findings that highlighted that lower hiring is expected by IT services companies in the near term because of the estimated slowdown in growth and lower attrition that will further decline over the next few quarters before stabilising at the long-term average of 13-15 per cent.
Asserting on the slow hiring as artificial intelligence booms globally, S Pasupathi, Chief Operating Officer, HirePro said, “Tech corporations, especially Global Capability Centres (GCCs) and IT services, might find it difficult to recruit extensively even with AI-first offerings and products creating a demand for new job roles. They would prefer onboarding senior-level lateral hires from outside, training their existing workforce and moving them to AI-related work.”