Huge hiring by Indian IT companies expected in coming months1 min read . Updated: 08 Jul 2021, 12:49 PM IST
- Investment by the enterprises on talent acquisition has accelerated, HDFC Securities said in a note
As covid cases continue to decline, hiring activity of Indian firms is showing signs of revival after the disruption caused by the deadly second wave in the country.
Hiring in the IT-software/services sector grew 5% month-on-month in June as demand for technology increased, a report by Naukri JobSpeak showed. Not only did the sector continue its recent surge of 14% in May, but achieved an all-time high growth of 52% compared to pre-covid levels in June 2019, as per the report.
Furthermore, the hiring activity by the Indian IT companies is expected to be huge in the coming months. Analysts at HDFC Securities are positive on the IT (information technology) sector and said that investment by the enterprises on talent acquisition has accelerated and therefore ''huge headcount addition is expected in the coming quarters by all the service providers.''
In a recent note, brokerage and research firm HDFC Securities said that the supply-side and talent crunch are not causing any pricing fluctuation in the sector, partly due to automation creating disconnect between labour cost and rates. Providers are looking to hone talent in competitive areas with the prevalence of tiered pricing structure (based on skills and scope).
''We reckon that greater propensity for outsourcing can be supported by a tight supply scenario and scope shifting to outsourcing,'' HDFC Securities' Institutional Research note stated.
In mid-June, IT industry body Nasscom said that the sector continues to be a net hirer of skilled talent, and the top 5 Indian IT companies are planning to add over 96,000 employees in 2021-22.
"With the evolution of technology and increasing automation, the nature of traditional IT jobs and roles will evolve overall leading to creation of newer jobs. The industry continues to be a net hirer of skilled talent, adding 1,38,000 people in FY2021," Nasscom said in a statement. It asserted that players have robust hiring plans for 2021-22 with the top 5 Indian IT companies planning to add over 96,000 employees.
It added that the industry will continue to be a net creator of jobs and is "committed to people-centric innovation, relentless talent focus", and delivering a superior transformative customer experience.
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