Today: 7 October 2025
5 December 2023
1 min read

Muted Hiring Ahead in Indian IT Industry

This led to negative employee net addition during this period, as companies reduced hiring and focused on improving overall utilisation levels….reports Asian Lite News

Hiring in the Indian IT services industry is expected to remain muted over the next two-three quarters amid slowdown in demand, with companies focusing on maintaining their profitability in the backdrop of lower revenue growth, a new report showed on Monday.

The Indian IT services companies hired extensively over the second quarter of FY2021 to the second quarter of FY2023, as demand for digitalisation accelerated following the Covid-19 pandemic, according to the report by credit rating agency ICRA.

Simultaneously, the attrition rate in the industry also intensified to 22-23 per cent due to the increased demand for talent. This led to a record hiring of 273,000 employees in FY2022 and another 94,400 employees in H1 FY2023 by the top five companies in the industry.

“However, from Q3 FY2023 onwards, the overall demand environment for IT services weakened due to uncertainty in the global macroeconomic environment,” according to the report.

This led to negative employee net addition during this period, as companies reduced hiring and focused on improving overall utilisation levels.

This has helped companies maintain their employee cost and profit margins in the recent quarters.

ICRA expects the revenue growth of the Indian IT services industry to moderate to 3-5 per cent in FY2024 in USD terms versus 10 per cent in FY2023 owing to the uncertain macroeconomic environment in key markets i.e the US and Europe.

“The slowdown is expected to persist for another couple of quarters, leading to overall slowdown in hiring in the industry,” said the report.

The attrition rate has declined in recent quarters, which has helped reduce the demand-supply mismatch in the industry, it added.

“Indian IT services companies continue to utilise the excess capacity added in FY2022 and H1 FY2023. The freshers recruited then are now getting utilised, leading the company to not backfill the attrition to an extent,” the report added.

ALSO READ: ‘India’s Energy Demand to Double by Decade’s End’

Previous Story

Gaza War: Two states Are Better Than One

Next Story

Vinod Khosla Backs Murthy’s Work Anthem

Latest from Business

Rupee, Markets Gain Amid Trade Optimism

Emerging market currencies, including the rupee, have gained support amid softening in the dollar. Reports suggesting that the US economy is on the verge of a recession have contributed to the greenback’s

Gold Shines Bright Amid Global Jitters

Gold and silver continued their bullish run on Monday, scaling new highs amid mounting global uncertainties, heightened geopolitical tensions, and growing expectations of a US Federal Reserve rate cut. According to the

ADNOC signs 15-year LNG deal with Indian Oil

Under the deal, LNG cargoes can be delivered to any port across India, enhancing the country’s energy security and meeting its rising energy demand. Abu Dhabi National Oil Company (ADNOC) has signed

India Inc Eyes Upswing

Private equity (PE) remained comparatively stable in Q2, clocking 357 deals worth $7.4 billion — the second-highest volume since Q4 2022. However, deal values dipped on a quarter-on-quarter basis due to the
Go toTop

Don't Miss

Crafting Timeless Tales of Elegance in Indian Menswear

The beauty of this is reflected in the vastness through

Indian Shooting Stars Blaze A Trail At Asian Games

Indian shooters achieved their best-ever Asian Games performance in Hangzhou,