The IT sector, one of the major contributors to the Indian economy, has been facing a slowdown in recent times, leading to a dip in the hiring of freshers. According to a recent study conducted by Spectrum Talent Management, there has been a 30% dip in the hiring of freshers as compared to the last two years.
However, job roles in newer technologies of Artificial Intelligence, Machine Learning, Big Data, Cloud, and Cybersecurity are slated to witness a manpower spike ranging between 40-60% in the coming quarters.
The IT sector has been grappling with several challenges such as the rise of automation and AI, changing customer preferences and many more. These challenges have resulted in a reduction in the demand for new talent, leading to a decrease in the number of jobs available for freshers. As compared to 2022, new job openings for freshers, especially in the IT sector, have dipped by almost 20% this year.
Job seekers have identified “upskilling” as the key to market competitiveness and they prefer professionals who are well versed with technologies like blockchain, cybersecurity, AI / ML DevOps. Due to the rapid pace of tech advancement and increased globalisation, the job market has become quite dynamic while being responsive to global market turbulence.
The study conducted by Spectrum Talent Management revealed that one of the major factors responsible for the hiring slowdown is the increased focus on upskilling and reskilling of existing employees, rather than hiring new ones. Additionally, many companies are opting for contract-based employment resulting in an increase of almost 20% as compared to last year rather than permanent employment, to reduce costs.
“The IT sector has been going through a period of transition, and we are seeing a shift towards more contract-based employment and upskilling of existing employees. While this has resulted in a slowdown in the hiring of freshers, we expect the situation to improve in the coming years as the sector adapts to the changing landscape. The current market slump in IT jobs is evident but won’t last long and will respond strongly to global headwinds,” said Sidharth Agarwal, Director of Spectrum Talent Management.
The study also highlighted that the dip in hiring was not uniform across all cities and sectors. Tier-1 cities such as Bengaluru and Hyderabad were still seeing a steady demand for freshers, while tier-2 and tier-3 cities were experiencing a more significant slowdown.