Another Washout Year?

During CY2023 quarterly results discussions, blockbuster dealmaking took centre stage for India’s top IT players. Despite the spotlight, the financial payoff has yet to materialise amid a slump in discretionary spending throughout the year.

The USD 250-billion Indian IT services sector is unmistakably bracing for a near-term slowdown, influenced by restrained tech investments in the US and European markets grappling with high interest rates and inflation. This is reflected in consistent revenue guidance cuts across major IT players as they deal with tough market conditions. Complicating matters, global disruptions like Russia’s prolonged war in Ukraine and the Israel-Hamas conflict add another layer of complexity to an already challenging landscape.

“The foundation of technical education in India heavily relies on IT hiring, and campus hiring serves as a crucial avenue for industry growth. However, due to a subdued year, headcount growth has stagnated, resulting in a decline in the attrition rate. Campus hiring currently experiences a 15 per cent reduction, with an anticipated overall dip of 25 per cent in 2024, following a significant decrease in 2023.” – Anshuman Das, CEO at Careernet.

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