Hiring activity in India’s IT industry has slowed down, with a decline of 2 to 3 per cent in legacy tech roles as companies increase investments in artificial intelligence and adapt to global economic uncertainties. This trend is expected to continue in the coming months, with experts citing Trump’s 50 per cent tariff on India, AI adoption, and weak global demand as major contributing factors.
Outsourcing firms reported a 10 per cent drop in overall hiring between July and August. During the current quarter, six leading IT companies, including Tata Consultancy Services and Infosys, hired only 3,800 employees, marking a steep 72 per cent decline compared to the March quarter.
Job availability has also fallen sharply. By the end of August, there were only 43,000 openings for tech roles, which is 24 per cent lower than the same period last year and 41 per cent lower than September 2022, according to data cited by industry trackers.
Across sectors such as product companies, startups, global capability centres, and non-tech firms, there were over one lakh active openings in August. However, this figure is 1 per cent lower than July and 24 per cent below last year’s levels.
Industry reports suggest that the demand for technology jobs has been consistently weak over the past three months, with overall active demand dropping 49 per cent. Kamal Karanth, co-founder of Xpheno, said this represents one of the lowest demand levels in three years and noted that the data does not indicate an “immediate turnaround.”
Similarly, Kapil Joshi, CEO of Quess Corp, observed that hiring demand fell by 20 per cent in August compared to July. He added that the trend is likely to continue for the rest of the year, with recruitment expected to remain soft in September and taper further during the festive season months of October, November, and December.
In recent quarters, tech service providers have focused largely on replacing employees lost to attrition and maintaining high utilisation rates, rather than expanding their workforce aggressively.
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