Decoding the 30% Cut in Fresher Hiring by Indian IT Firms Amid Market Uncertainty!

Decoding the 30% Cut in Fresher Hiring by Indian IT Firms

The Indian IT services sector, which is renowned for its active pursuit of new talent and fresher hiring, is undergoing a substantial change in its hiring practices. There has been a notable shift away from employing fresh graduates during a buoyant time from 2021 to September–October 2022, during which big IT companies like TCS, Infosys, Wipro, HCL, Tech Mahindra, Cognizant, and Accenture avidly recruited recent college graduates in anticipation of growth. Weak deal flows and ongoing worries about a US market slump are the main causes of this move.

They are now proposing to reduce their employment of freshmen. In FY24, the staffing company TeamLease Digital expects a 30% year-over-year reduction.

The fact that hundreds of recent engineering university students from the 2022 and 2023 batches have landed positions with IT services companies, either on- or off-campus, just adds to the intricate nature of the matter. Many of them are dealing with never-ending onboarding delays, and some have been promised jobs over a year ago but have yet to hear back from those businesses regarding a joining date.

Others find it frustrating when employers keep extending joining deadlines every two to three months. While their offer letters are about to expire, some have been required to do more training, while others have had their offers canceled. These young professionals are lost in the choppy digital job market.

Reports stated that the labor union has received grievances about onboarding delays from between 20,000 and 25,000 students over the course of the last two batches. Given the uncertain business climate, it is only natural that this circumstance has sparked inquiries as to why numerous offer letters were made to recent graduates

Leading professionals in the field, including T.V. Mohandas Pai, head of Aarin Capital, as well as previous CFO of Infosys, support the quick training and onboarding of new hires, even if it means experiencing financial difficulties for a few months. They think that investing in young talent today will eventually pay off once growth resumes.

The way the Indian IT sector responds to the difficulties confronted by these fresh graduates will likely determine the direction of IT employment in the nation as it manages the delicate equilibrium between economic uncertainty and the expectations of its new hires. The choice of prioritizing onboarding despite the difficulties or recalibrating hiring tactics would have far-reaching effects on both businesses and the ambitious graduates hoping to establish a name for themselves in the technology industry.

‘Fresher Hiring’ Article By Deby T

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