After several quarters of de-growth, the information technology (IT) sector has started witnessing some steady growth in terms of hiring. The hiring industry expects that the sector be now on the recovery path. The IT sector hiring has been witnessing a slowdown for the past four to six quarters. For more than a year, job portal Naukri.com has been reporting negative growth in the sector.
In October the sector managed to move out with a marginal growth of 2 per cent and in November IT sector recorded a growth of 7 per cent, indicating steady recovery. “In my view, the prevailing uncertainty in the global markets could be one of the primary reasons for the slowdown in the IT sector that we have been seeing for the past 4-6 quarters,” said V Suresh, chief sales officer, Naukri.com.
While the new technologies are changing the talent requirements in the industry globally, Indian firms now have to realign with the hiring requirements in their US offices as well. “Realigning the hiring strategies by increasing headcounts in the US due to the shift in the policies of the new American administration is a cause of worry for a few biggies with large share of revenues coming from that country,” said Sonal Arora, vice-president, Teamlease.
But in July there was some spurt in hiring numbers, mainly due to campus hiring. “So, the spurt was partly because of campus hiring and partly due to the increase in demand for the new-age skills in the market,” said Suresh.
But the sector could not sustain the growth and the next two consecutive months saw growth once again falling into the negative territory. Undoubtedly there was turbulence in the job market in August and September. On the other hand, there was increased demand for niche skills and new-age technologies. But it was hard to predict in which direction the market will move, both in the short and long run.
Now with growth moving up from 2 per cent in October to 7 per cent in November, industry expects that there could be a steady recovery going ahead. “The job market is cautiously optimistic. It looks like there is a slow but steady recovery in IT as well as other sectors. We can expect the market to move north in the coming few quarters,” added Suresh.