Q1FY24 results of IT giants shed light on the impact of economic uncertainty, on the overall profit and margin. As these companies strive to maintain financial stability and adapt to evolving market dynamics while focusing on business transformation and technological advancements, their subdued Q1 results have triggered a cautious approach toward talent acquisition, and the same is expected to continue. As a good sign, almost all major players witnessed a dip in attrition. However, on the other hand, the net addition of employees has dropped compared to the previous quarter. Given the subdued results and the prevailing environment, the IT sector is anticipated to adopt a cautious stance toward hiring in the upcoming quarter.
Sharing his views, Mr. Sachin Alug, CEO of NLB Services added, ‘The current scenario necessitates a prudent approach to recruitment, emphasizing quality over quantity. Organizations are likely to prioritize hiring for critical positions and specialized skill sets that align with their growth strategies and the evolving needs of their clients. The IT sector’s continued focus on transformation will require a skilled workforce proficient in emerging technologies such as Generative AI, machine learning, cloud computing, cybersecurity, and data analytics, among others. Despite muted sentiments, demand for these niche skills will continue to rise 10-12% Q-o-Q in this financial year.’
Overall, the hiring outlook in the IT sector for Q2 FY24 is expected to be cautious yet strategic. While hiring volumes may remain relatively muted, organizations will focus on optimizing existing talent, strategically acquiring specialized skill sets, and embracing emerging technologies.