A Sharp Decline In Hiring Mandates By Tech Companies In 2023
Tech firms are facing a steep decline in their hiring mandates with an estimated drop of nearly 90% in December 2022 from a peak of over 110,000 monthly active openings a year ago.
This major correction comes even as India’s $220 billion software services industry trains for an indecisive economic scenario. The significant downshift in hiring, which began with a near 50% dip in June 2022, is being noticed across all IT services companies, small and big alike. However, the market for specific skills stays high.
In the second half of 2022, a major downfall can be seen in new job opportunities, and the concern for inflation and recessionary across the US and European markets added fire to the fuel.
IT majors like TCS, Infosys, Wipro and HCL Tech hired around 2.2 lakh employees during the fiscal term of 2022.
However, economic concerns stoked by the Russia-Ukraine conflict and recession fears in the US have declined the outlook for technology services. The news of mass layoffs in global market giants like Meta, Twitter, and Microsoft to manage costs in a heightened inflationary environment has already startled the world. Whereas, in India, startups are facing a sharp decline in growth capital funding are also resorted to widespread layoffs.
There was a sudden shortage of requirements which dropped around 50% in September and were down 70% in December 2022.
In an interview with ET, TCS CEO Rajesh Gopinathan said that the hiring scenario is expected to be benign in 2023. Recruiters are pointing out that the current dip in hiring is a result of uncertainty in job markets.
Tech firms are facing a steep decline in their hiring mandates with an estimated drop of nearly 90% in December…