Hiring of freshers by IT companies likely to go off-campus in FY25

HR experts concurred that the fiscal year 2024-25 will be better than the last fiscal. The total intake from campuses for the sector may hover around 100,000-120,000, according to estimates by Xpheno

On the campuses of India’s engineering colleges, the usual buzz of anticipation is noticeably tempered this year. Although the top four IT services players — Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech — have announced their 2024-25 plans to embark on the campus recruitment trail, there is a sense of restraint compared to the bustling hiring seasons of the past.

There is a shift in hiring trends, according to human resource (HR) experts, suggesting a lean towards the off-campus recruitment season.

Business Standard’s conversations with several colleges reveal that while IT firms have expressed interest in campus recruitment, many are yet to commit to specific timelines for their visits.

Still, according to HR experts, 2024-25 appears to be more promising than the last. According to estimates from Xpheno, a staffing consultancy, the IT sector’s campus intake may range between 100,000 and 120,000, significantly higher than the sub-70,000 figure recorded last year.

 

The engineering campus hiring season typically stretches from July to September, with off-campus recruitment commencing as late as December and extending into March.

This financial year, institutions are cautiously optimistic about the return of recruiters, albeit at a measured pace. “Many IT firms are gradually ramping up their campus engagement activities. They are visiting campuses, delivering presentations, and even organising competitions and exams for recruitment. Big IT services companies have made announcements on hiring but they have not hit the campuses yet,” says Anjani Bhatnagar, deputy director of Amity Technical Placement Cell.

Some firms, such as Accenture and ServiceNow, he said, have already initiated campus visits for the 2025 batch, with more expected to join the cycle in the coming months.

Vellore Institute of Technology (VIT), a notable exception in last year’s challenging recruitment climate, reports a cautious return of companies this year. “Last year, we hosted 947 companies, and so far this year, we’ve seen 850. VIT has performed reasonably well, with 85 per cent of registered students securing placements, compared to 90 per cent last year. We anticipate an increase in off-campus drives starting in August,” says V Samuel Rajkumar, director of VIT’s Career Development Centre.

At Galgotias University, the sentiment echoes a similar measured anticipation. “TCS recently concluded the hiring process for our 2023-24 batch, selecting 107 students. While the company is expected to begin the hiring process for the 2024-25 batch, it may be scheduled for later months. Infosys, on the other hand, has already commenced its recruitment process for the upcoming batch and will be conducting interviews in August. Companies are currently focused on hiring for niche roles, but we remain hopeful that they will expand to lower-package profiles in the coming months,” shares Dhruv Galgotias, CEO of Galgotias University.

While TCS and HCLTech had declared their fresher hiring plans well in advance, Infosys and Wipro have also recently announced their intentions. Infosys aims to recruit 15,000-20,000 freshers, while Wipro plans to hire around 10,000-12,000. TCS leads the pack with a target of 40,000 fresher hirings.

HR experts express confidence that FY25 will outshine FY24 in terms of recruitment numbers. However, much hinges on the macroeconomic environment, which, according to industry leaders, hasn't undergone significant changes. Salil Parekh, CEO of Infosys, recently stressed that fresher hiring targets will be contingent on anticipated growth trajectories.

Anil Ethanur, co-founder of Xpheno, notes the cautious and conservative stance of companies amid ongoing headwinds and macroeconomic uncertainties. While firms have come out their fresher hiring plans, much depends on the performance of the current and subsequent quarters.

“For now, the festive look that campuses usually sport for the hiring season is missing. Companies are likely to wait and see if the green shoots of recovery spotted last quarter persist into the next. As it stands, both campuses and talent should brace for a low-velocity campus hiring season that might extend into the off-campus period,” Ethanur explains.

Ethanur believes that the overall hiring targets will remain contained. “The outlook for job creation in FY25 is nearly at the low-to-moderate levels observed in FY24. Based on some of the annual and quarterly commentaries, the sector-level intake could range between 100,000 and 120,000 as the best-case scenario for the year,” Ethanur adds.

Pasupathi, COO at HirePro, offers an optimistic view, predicting a 20 per cent increase in sector-wide hiring compared to FY24. “In the past few quarters, we have seen an uptick in lateral hiring. If that is happening, fresher hiring will also pick up pace. We expect FY25 to be a better year than FY24. Also, the IT industry will need to recalibrate its hiring baseline, as FY24 was an aberration in terms of negative headcount growth, and so was FY21 due to an abnormally high number of hirings,” adds Pasupathi.