Narayan AmmachchiIndia’s top IT companies, such as Infosys and TCS, are facing a hiring crunch, with many of them expected to hire 40% fewer employees compared to the previous financial year.
According to staffing firm Xpheno, India’s biggest tech players may hire between 75,000 and 150,000 professionals this fiscal year. In the previous one, hirings reached a far higher volume of 250,000.
The slowdown in hiring is being driven by a number of factors, including rising inflation in the western market and weak demand. Inflation has made business operations more expensive, pushing several companies to cut back on their IT spending, which has caused project delays and cancellations.
India’s top IT companies laid off more than 20,000 employees during the three-month period ending June 31.
The hiring crunch is bad news for freshly graduated engineers, who might have to wait years to get their first job.
India graduates nearly a million technology enthusiasts every year, but many of them end up working in non-technical jobs largely due to a lack of financial incentives to undergo IT training programs.
The federal government has a ministry specifically for skill development, and private companies also offer training. However, neither of these entities offers a salary during the training period, which is a barrier for many graduates who need money to repay their educational loans.
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