Indian IT Sector Witnesses Softening Demand, Raises Concerns About Hiring
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Propelled by digital transformation India is emerging as a global hub for technology and innovation, with its IT sector playing a pivotal role. But despite the healthy support, Indian IT services industry witnessed a softening demand, a 3.5 per cent growth in FY 2024, significantly lower than 9.2 per cent YoY growth in FY 2023, according to a recent ICRA report.
The overcast scenario subsequently underlined the study’s findings that highlighted that lower hiring is expected by IT services companies in the near term because of the estimated slowdown in growth and lower attrition that will further decline over the next few quarters before stabilising at the long-term average of 13-15 per cent.
Underling the first two quarters of 2023 (January-June), Neelabh Shukla, Chief Business Officer, Careernet said, “Talent hiring plummeted and reflected the impact of the downturn. During this period, the tech industry faced severe challenges, with many organisations freezing hiring, laying off employees and delaying the onboarding of campus recruits. While the situation remained difficult in the subsequent quarter (July to September), we are beginning to detect signs of improvement,” Shukla added optimistically.
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