IT departments are grappling with several challenges, including the rise of automation and artificial intelligence, and changing customer preferences.
The IT sector, a major contributor to India’s economy, has faced a downturn in recent years, leading to a drop in new graduate hiring. A recent study conducted by Spectrum Talent Management, a global talent management company, found that new graduate hiring is down 30% compared to the last two years. However, in new technology roles such as AI, ML, big data, cloud and cybersecurity, he expects headcount to increase by 40-60% in the coming quarters.
IT departments are grappling with several challenges, including the rise of automation, artificial intelligence, and changing customer preferences. These challenges have reduced demand for new talent and reduced the number of jobs available to recent graduates. Compared to 2022, he saw a nearly 20% drop in new graduate job openings this year, especially in his IT field.
Job seekers recognize that “up-skilling” is the key to market competitiveness and prefer technology-savvy professionals such as blockchain, cybersecurity and AI/ML DevOps. Rapid advances in technology and increasing globalization have made the job market highly dynamic, sensitive to global market turmoil. A study conducted by Spectrum Talent Management found several factors contributing to the slowdown in hiring. One of the main drivers is that the focus is now on upskilling and reskilling existing employees rather than hiring new ones. Additionally, many companies are opting for contract-based rather than permanent employment to cut costs, resulting in almost a 20% increase compared to last year.
Spectrum Talent Management Director Sidharth Agarwal commented on the findings: “The IT sector is going through a period of transition, with a move toward more contract-based hiring and upskilling of existing employees. We expect the situation to improve in the coming years as we move forward.While the downturn in IT jobs in the current market is clear, it will not last long and will react strongly to global headwinds.”
The survey also highlights that the decline in employment is not even across all cities and sectors. His Tier 1 cities such as Bangalore and Hyderabad still saw steady demand for fresheners, while Tier 2 and his Tier 3 cities saw a more significant slowdown. In conclusion, the IT sector is facing difficult times, and the fall in new graduate hiring is just one of the many effects of this economic slowdown. India’s tech ecosystem remains highly dependent on the health of global markets, and the employment scenario will soon follow suit as markets recover.
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