An analysis conducted by recruitment firm TeamLease Digital has revealed that India’s IT companies are planning to significantly reduce campus hiring by at least 40%. This decision is influenced by factors such as strong bench strength, decreased client orders, and uncertainty regarding the duration of the ongoing recessionary phase.
In comparison to the 230,000 students hired from the 2023 batch of engineering campuses, IT firms are anticipated to recruit around 155,000 students from the 2024 batch. Saurabh Govil, the Chief Human Resource Officer at Wipro, explained the rationale behind this shift in approach. He stated that Wipro has chosen not to actively visit campuses in order to prioritize fulfilling the commitments of previously extended job offers. This decision is driven by the changing talent landscape, which has evolved over the past year. The previous rush to hire in anticipation of higher demand has been replaced by a more cautious strategy due to lower attrition rates and ongoing economic uncertainty.
Wipro, for instance, was originally planning to hire 23,000 employees in FY23. However, due to onboarding delays, the company has emphasized its commitment to honoring all job offers.
This reduction in hiring demand for IT companies marks a significant shift from the situation just two years ago, when there was a hiring frenzy in progress. According to CEO Sunil Chemmankotil of TeamLease Digital, projections indicate that IT firms are expected to employ 155,000 students in FY24, which represents a nearly 48% decline from the 230,000 hires in FY23. This drop is particularly notable considering that the IT sector hired 600,000 individuals in FY22 during the boom period following over a year of pandemic-related challenges.
