IT Industry Witnesses Dip In Hiring In April: Study
The heat of layoffs in IT industry is the most striking this year, so much that it is larger than the global economic downturn of 2008. And not just that, even the hiring activity it at its worst ever. With major IT firms laying off professionals, this year registered a 24 percent dip in hiring as compared to April 2016, according to a survey by job site Naukri.com.
Also according to an Experis IT Employment Outlook Survey findings inMint, 58 percent of Indian companies plan to hire in the April-September period, which is 15 percent drop from the previous year.
The study noted that 24 percent of workforce will be hired in South India, Followed by North and West India at 16 percent, and East India at 2 percent.
Hiring will be mostly restricted to mid-senior level with 53 percent respondents look to hire candidates with 3-8 years of work experience, while 19 percent plan to hire junior level with upto work experience of three years and 2 percent plan to hire at the senior level, states the survey.
Last week Cognizant announced a voluntary separation program for the directors, associate VPs and senior VPs. Around 1000 executives are expected to leave. The company is expected to eventually let go of at least 6,000 jobs or 2.3 percent of its total workforce.
Wipro CEO Abid Ali Neemuchwala in an internal conference call in March this year expressed that the company with an employee base of 1.81 lakh employees could cut off 10 percent of its workforce this year if the revenues do not grow. (Click here to read more)
“The overall job market saw an 11 per cent fall in new jobs, with IT-software industry most hit. IT-Software industry was hit the most with a 24 per cent decline in hiring in April as compared to April 2016,” the Naukri Job Speak Index said.
The hiring process saw a fall in Telecom, BPO, Insurance and Construction sectors during April this year as compared to last.
April job index saw year-on-year fall in major metros- Delhi/NCR, Mumbai, Bengaluru and Chennai, it said.
Industries including construction and BPO/ITES saw a 10 percent and 1 percent fall respectively. The banking sector saw a 11 percent rise in hiring during April 2017 as compared to April 2016, it added.
“As predicted earlier, job market continues to be volatile and the Jobspeak index in April has shown a negative growth of 11 per cent (YOY),” said, V. Suresh, Chief Sales Officer, Naukri.com.
“Though major negative impact seems to be in sectors like IT/BPO/telecom/insurance and construction, there seems to be an air of caution across all sectors and this volatility is likely to continue for a few more months before the markets could move north again.”
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