First the bad news – if you thought recession-induced layoffs were about to ease, brace yourself. Research shows that the worst may be yet to come in 2023. But India, as it has been doing lately, seems poised to buck the trend as another survey shows that India’s IT industry could resume hiring in the first quarter in 2023
Staffing and recruitment firm Randstad says in its survey that seven out of ten IT companies in India are likely to increase headcount in the next quarter – January to March. The research, first reported by ET, said factors like cost optimization and political and economic stability in India could be contributing to this trend.
In fact, some of the HR executives we spoke with confirmed this information. Of course, they gave no indication as to whether employment levels would be the same as last year or the year before. “Our recruitment process has started and we hope to start sometime in the second half of January,” says a senior HR official at a Bengaluru-based IT company.
It seems the global giants are also ready to hire
What’s interesting is that outsourcing companies in India seem to be playing a key role in this trend. Some have imposed hiring freezes in their home countries but are hiring more resources in India. These companies are investing more in India to manage their business continuity plans, which would otherwise fail given the spate of layoffs.
Until this latest survey, most reports painted a bleak picture of slowing hiring in the IT industry. However, now some global tech companies are looking for new hires and even new locations – away from Bengaluru, Chennai and Hyderabad. Pune and Kolkata are among the cities that attract more interest.
In fact, the ET report quotes officials from Tech Mahindra and Mphasis as suggesting that hiring could pick up by 2023 compared to earlier years. Officials were quite positive about overall hiring numbers improving over the next 12 months, with fullstack developers, infrastructure specialists, AI, IoT and UI/UX designers in demand.
The worst could be around the corner
All this comes as data from tech layoffs database layoffs.fii suggests that a total of 2.46 million workers have been given the pink slip since the start of Covid-19 by 1,495 tech companies. The data suggests that 2022 will be the worst year for the technology sector, but indicates that 2023 could be worse.
The data suggests that more than 73,000 people have lost their jobs in the United States, and companies such as Twitter, Meta, Netflix, Salesforce, Google and Cisco have learned the lesson. In fact, about 17,000 tech jobs were lost in India as well.
While Amazon has cut its workforce by 20,000 people, HP has lost 6,000 employees so far, followed by Meta with 4,000 job losses. Google is also preparing for another round of layoffs in early 2023, although there has been no official confirmation or denial of the possibility.