The information technology sector in India is slowing down. The industry that added the most employment over the previous two years is currently experiencing a downturn in hiring. When compared to last year’s holiday season, hiring was down 18% in October, according to the Naukri Jobspeak index report.
Bangalore, India’s IT capital, experienced the largest decline in hiring in the IT sector this October as compared to the same month last year, with a 16% decrease. During the same time span, Pune (11%) and Hyderabad (12%) also had a comparable trend.
Indian IT giants reduced employment in the second quarter by at least 57%. TCS was second with a cut of 58%, and Wipro claimed the highest cut of 95%. Despite the high rate of attrition in the IT sector, this is the case. The greatest attrition rates were recorded by Infosys and HCL Tech, at 27% and 23%, respectively.
Slow Hiring by the Sectors
Other than the IT industry, the telecom and healthcare industries also had a considerable fall in hiring sentiment in October of this year compared to the previous year of 19% and 13%, respectively.
The short slowdown in hiring activity was anticipated given the holiday season, according to Naukri.com Chief Business Officer Pawan Goyal. However, when you compare the statistics with the holiday window from the previous year (Nov. 21), the Index is a solid 13% ahead, which is comforting.
Comparatively, over this Christmas season, hiring in India’s insurance sector increased by an astounding 93% year over year. Some of the other industries that have continued to demonstrate positive trends this season are BFSI, oil, travel & hospitality, real estate, and auto.
Goyal continued that it is fascinating to observe that most important industries continued to expand hiring during this month, and that trend is likely to continue as year-end draws near.
About the Hiring Activities
Comparing this holiday season to the previous year, the growth graph for hiring activities in the national capital was determined to remain unchanged. While Kolkata and Mumbai, two other major cities, kept expanding by 8% and 15%, respectively. According to the survey, the need for white-collar workers increased in non-metros like Jaipur, Kochi, Vadodara, and Coimbatore.
While the demand for senior professionals with over 13 years of experience increased by 6% over the previous year, the demand for experienced professionals as a whole remained unchanged in October of this year. Demand for mid-level professionals (4 to 12 years experience) decreased by 4%, while demand for recent graduates remained unchanged.
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