Hiring plummets to 20-year low at Indian IT companies: Impact on engineering graduates explained
By Team Asianet Newsable | First Published Feb 2, 2024, 3:49 PM ISTOne of the most significant implications of this recruitment decline is expected to be felt by Tier-2 colleges, which heavily rely on IT services for placements.
Indian IT giants bring discouraging news for engineering graduates, with a recent report by The Economic Times highlighting a minimal intake of fresh engineers from institutes across the country. The recruitment figures, ranging between 70,000 to 80,000, represent the lowest numbers in over two decades. The bleak scenario continues, as estimates from staffing agencies indicate that less than 10% of the expected 1.5 million engineering graduates from various campuses this summer will successfully secure job placements. This downturn in recruitment poses significant challenges for the aspiring engineers entering the workforce.
Recruitment trends
Latest Videos
The year 2022 was considered a 'boom' year for engineering graduates, with IT companies hiring a record-breaking 600,000 freshers during the peak of the technology services boom. However, the momentum witnessed a decline in 2023, with fresher hiring standing at 250,000, signaling the onset of a notable downturn in new recruitments.
Reason behind the decline
Several factors contribute to the decline in recruitment, with the ebbing impact of Covid-19 and escalating geopolitical tensions in regions like Ukraine and Israel playing a crucial role. These challenges have prompted Indian IT providers to scale back their recruitment efforts for fresh talent.
Impact on Tier-2 colleges
One of the most significant implications of this recruitment decline is expected to be felt by Tier-2 colleges, which heavily rely on IT services for placements. Offers from IT companies are estimated to decrease by more than half, posing a significant challenge for engineering graduates from these institutions.
Campus recruitment by major players
Notably, leading IT firms like Infosys and Wipro are expected to abstain from campus hiring for the second consecutive year, further exacerbating the challenges faced by engineering graduates. TCS, while still participating in campus recruitment, has announced plans to hire fewer freshers, contributing to the overall decline in opportunities for recent graduates.
The current scenario in the Indian IT job market reflects a challenging environment for engineering graduates, with the lowest recruitment figures in over 20 years. The combination of global uncertainties, the aftermath of the Covid-19 pandemic, and the strategic decisions of major IT players has led to a downturn in opportunities for fresh talent. As the job market evolves, engineering graduates and educational institutions may need to adapt to these changing dynamics to enhance their prospects in the competitive IT industry.
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.