IT sector slowdown results in 30% decline in hiring of freshers: Report

The Information Technology (IT) sector has been witnessing a slowdown in recent times, not just in India but also globally. With mass layoffs occurring in major IT companies, there has been a dip in the hiring of freshers, a new report from Spectrum Talent Management shows. 

A 30 per cent dip has been reported in the hiring of freshers as compared to the last two years, the report said. The sector has been grappling with several challenges such as the rise of automation and artificial intelligence, changing customer preferences, and many more. These challenges have resulted in a reduction in the demand for new talent, leading to a decrease in the number of jobs available for freshers. As compared to 2022, new job openings for freshers in this sector have dipped by almost 20 per cent this year. 

The study revealed that several factors contributed to the slowdown in hiring, which includes increased focus on upskilling and reskilling of existing employees, rather than hiring new ones. To reduce costs, many companies are also opting for contract-based employment rather than permanent employment, resulting in an increase of almost 20 per cent, as compared to last year. 

Further, it highlighted that the dip in hiring was not uniform. While Tier-1 cities such as Bengaluru and Hyderabad were seeing a steady demand for freshers, Tier-2 and Tier-3 cities were experiencing a more significant slowdown

However, it also revealed that job roles in newer technologies of AI, ML, Big Data, Cloud, and Cybersecurity are slated to witness a manpower spike ranging between 40 per cent - 60 per cent in the coming quarters. 

Upskilling has been identified by job seekers as a key to market competitiveness. Professionals who are well versed with technologies like blockchain, cybersecurity, and AI / ML DevOps are often given preference.