Back
TREND

IT companies hiring freshers despite recession fears

 

Informist, Friday, Sep 9, 2022

By Vivek Kumar

MUMBAI - Concerns about a possible recession in key markets notwithstanding, information technology companies continue to hire a large number of freshers due to expectation of sustained momentum in demand.

 

Executives at IT services companies indicate that recession fears have not deterred them from hiring, even as attrition remains at elevated levels.

The Strong Hiring Momentum Despite The Uncertain Macroeconomic Conditions Is Partly Because The Companies Believe Any Impact Of A Recession Will Only Be Temporary, And That Robust Digital Infrastructure Has Become Necessary For Businesses To Remain Competitive

 

"We are working towards building future-ready talent across niche digital skills such as artificial intelligence, internet of things, deep tech, and space technology," Harshvendra Soin, global chief people officer and head - marketing at Tech Mahindra Ltd, told Informist.

The fifth-largest Indian IT services provider has increased hiring across all levels, especially at "the bottom of the pyramid", Soin said.

 

During the financial year ended March, India's largest IT services company Tata Consultancy Services Ltd added a record 100,000 freshers, more than double its target of 40,000. Other IT companies also hired in record numbers during the year. 

 

TCS generally starts a year with a target to hire 40,000 freshers. During its Apr-Jun earnings call, the company said it was confident of achieving this target this financial year.

 

Similarly, after seeing some moderation in hiring during the previous quarter, HCL Technologies had said it planned to on-board 10,000 freshers in Jul-Sep. This, the company said, would be its highest addition of freshers in the past five or six quarters.

 

"The hiring trend hasn't changed much compared to last year. Rather, we have been noticing an upsurge in hiring needs with almost 20% of our new recruits being freshers," Nidhi Khulbe, head of recruitment at technology consulting company Indus Net Technologies, told Informist.

 

Zuci Systems, another emerging digital transformation company, said it aims to triple its headcount in the next two years.

 

"We have a progressive roadmap for the organisation to scale the existing sturdy framework aiming high for the next two years," said Venkatesh Veerachamy, director of delivery and operations at Zuci Systems, which is primarily present in Chennai.

 

The strong hiring momentum despite the uncertain macroeconomic conditions is partly because the companies believe any impact of a recession will only be temporary, and that robust digital infrastructure has become necessary for businesses to remain competitive. 

 

Moreover, the companies would not like to jump the gun by slowing down on hiring just yet and risk a repeat of what happened in 2020, when they had put brakes on hiring due to the COVID-19 pandemic and later, when demand spiked, faced an unprecedented supply-demand mismatch. 

 

That mismatch is still hurting the companies today, as they struggle to check the rising attrition.

 

SKILL Vs QUALIFICATION

The talent shortage has forced IT companies to tap other sources to scout for employees, rather than just resorting to qualified professionals from top institutes.

 

"To adapt to the changing operational needs of business units with respect to skills and talent, we are hiring talent from new areas. We are also leveraging the gig workforce as talent can be found anywhere," said Soin.

 

Tech Mahindra has focused on skills over qualifications and opted for nearshore hiring, both in global locations and in tier-II and tier-III cities in India, Soin said.

 

Similarly, India's third-largest IT company HCL Technologies has an in-house career programme called TechBee for 12th pass students. The company plans to hire around half of its workforce through this programme in the future.  End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Other News

Natco, Laurus Labs talking to Gilead to make remdesivir, say sources

Cogencis, Friday, May 1 By Narayana Krishna HYDERABAD – City-headquartered Natco Pharma Ltd and Laurus Labs Ltd are in talks with US phamaceutical major Gilead Sciences Inc for a licence to manufacture antiviral drug remdesivir that is undergoing trials for the treatment of COVID-19, two sources familiar with the development told Cogencis.  According to reports, Gilead's remdesivir is emerging as the […]

INTERVIEW

Hexaware sales growth to outpace peers in 2019: CEO

Client-specific issues had capped the Mumbai-based company’s growth over the last two years¬†but 2019 will be stronger as recent deal wins translate into sales, Chief Executive Officer R.¬†Srikrishna said in an exclusive interaction with Cogencis.

Global economic worries to weigh on IT cos in 2019

The revival in growth of companies in Indian information technology space in early 2018 and strength over the course of the year resulted in sharp gains for their shares, but a repeat of this trend is not likely this year, analysts said.