IT hiring slowing down amid cost cuts
Tech cos focusing on maintaining profitability in backdrop of lower revenue growth
Top Line Pressure
- Revenue growth easing to 3-5% in FY24 in USD terms from 10% in FY23
- IT services cos hired extensively during Q2/FY21- Q2/ FY23
- Digitalization-led demand drove IT hiring after Covid-19
- Attrition rate rose to 22-23%
- This led to a record hiring of 273,000 employees in FY22
New Delhi: Hiring in the Indian IT services industry is expected to remain muted over the next two-three quarters amid slowdown in demand, with companies focusing on maintaining their profitability in the backdrop of lower revenue growth, a new report showed on Monday.
The Indian IT services companies hired extensively over the second quarter of FY2021 to the second quarter of FY2023, as demand for digitalisation accelerated following the Covid-19 pandemic, according to the report by credit rating agency Icra.
Simultaneously, the attrition rate in the industry also intensified to 22-23 per cent due to the increased demand for talent. This led to a record hiring of 273,000 employees in FY2022 and another 94,400 employees in H1 FY2023 by the top five companies in the industry.
