Sharp Decline Expected In IT Hiring In FY24 Amid Slowdown

The hiring process in the IT sector is expected to witness a sharp decline in financial year 2024 as macroeconomic headwinds reportedly stalling the growth. There is no likelihood of any respite anytime soon, according to reports.

The first quarter earnings declared recently by leading IT companies have given possible hints of slowdown in the sector as macroeconomic factors restricted the growth momentum. Staffing firms alleged that the scenario is likely to impact the hiring in IT sector in a strong way, as per an Economic Times report.

Meanwhile, leading IT services companies are likely to recruit between 50, 0000 to 100,000 employees next year, as per data available from staffing firm, Xpheno - a precipitous fall from the net hiring of more than 250,000 in the previous year.

The gloomy sentiment is likely to persist with little or no hints of green shoots in the IT sector in near future. Additionally, lack of visibility on rollout of latest projects is also leading to companies withholding fresh mandates for hiring, added the Economic Times report.

It is worth mentioning that in Q1 of FY24, five leading IT exporters namely HCLTech, Tata Consultancy Services (TCS), Infosys, Tech Mahindra, and Wipro announced a cumulative decline in net headcount of 21, 838.

Current market price of TCS share is Rs 3433.00 per share on BSE today. Wipro Ltd's current market price on BSE is Rs 409.15 apiece while HCLTech share price is Rs 1149.00 per share.

IT major TCS declared a positive headcount addition of nearly 500, but remaining companies registered a steep fall. Global IT Giants such as Cognizant, Capgemini, and Accenture, with huge employee base in India, witnessed headcount falling by more than 5000 each during the most recent quarter.