IT majors to cut down on hiring in FY24 amidst recession fears
What was a hiring boom in the Indian IT industry just a little over a year ago, has almost transformed into a hiring freeze. Most of the IT companies, especially the large names, are planning to aggressively slash campus hiring and entry-level hiring by as up to 20% in the next financial year i.e. FY24. Of course, the hiring for FY23 is unlikely to change, but there are several cases where even in the current year, the offers have been made in the current year but joining dates are yet to communicated. Also, in several cases, the offers have also been revoke by the leading IT companies.
It is apparently a lot to with the fears of a recession in the US and Europe looming. Most of the IT companies are likely to be hit as the recession normally results in a slowdown in technology spending and that directly impacts the IT companies. In addition, these IT companies are also faced with pricing pressure from the global companies so that also impacts their margins. The aggressive campus recruitments were conceived as a back-up plan for the high attrition rates. But with the slowdown looming, it is expected that the attrition rates should come down, so fresh recruits demand will be much lower.
The current estimates are that the FY24 fresher hiring could drop by as much as 20% over FY23 as companies will primarily focus on getting the delayed recruits onboarded to start working on client projects. Most of the freshers would still eventually gravitate towards the large IT companies since only they have the pockets to absorb the big numbers. Here is a quick summary of FY23 hiring by the major IT companies. Infosys is expected to hire 50,000 from college campuses, Wipro 30,000, TCS 40,000 students, Tech Mahindra 15,000 and HCL Tech 45,000. For FY24, it will be 20% to 25% lower than these numbers.
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