February saw a record-high demand for technology talent, raising optimism for a recovery in the IT hiring market, which hit a two-decade low this fiscal year.
In February, hiring mandates for IT talent reached 124,000, marking a nearly 50% increase from January and a 33% rise from December, according to data from staffing firm Xpheno.
This surge signals a significant uptick in demand for IT professionals in the job market.
These hiring mandates reflect companies’ forecasts of future demand, and not all may result in actual hires. They serve to establish a talent pipeline that can be readily absorbed when needed.
This strategic approach allows companies to prepare for upcoming needs while ensuring they have access to a pool of qualified candidates to meet evolving requirements in the IT sector.
Data from Teamlease and another recruitment firm, as reported by ET, indicates that staffing firms anticipate a tangible hiring surge of 7-8% in the latter half of this calendar year.
This projection suggests a positive trend in employment within the IT sector as demand for talent continues to grow. Krishna Gautam, business head of direct hiring – IT at Xpheno, said that active talent demand in the tech sector is showing robust signs of improvement in almost three quarters.
He highlighted that talent demand from the tech sector, encompassing IT services, software products, and tech startups, experienced its initial growth phase in this fiscal year, indicating a positive trajectory for employment in the industry.
Gautam anticipates demand for IT talent to increase further to 150,000 in March.
The recent hiring data covers IT services, software products, and tech startups. However, a substantial portion of this demand stems from the IT services sector, known for its extensive hiring practices, albeit with an exception in 2023.
According to ET, fresher hiring for the $250-billion IT sector in the current fiscal year ending March 31, 2024, is expected to decline by 60%-65% year-on-year, with an estimated intake of 70,000-80,000 fresh engineers. This marks the lowest recruitment level for freshers in over two decades.
However, a pick-up in fresher hiring is anticipated from the second half of this calendar year.
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