Info Edge reports that IT sector hiring growth is approaching double digits, reflecting a revival in demand for entry-level talent. After dealing with over-hiring issues, utilization rates have returned to pre-Covid levels. This shift is stimulating recruitment, not only in large IT firms but also among GCCs and startups.
According to Info Edge, the growth rate of hiring within the Information Technology (IT) sector is nearing double digits, indicating a resurgence in demand for entry-level positions. Following recent years of over-hiring, many IT firms found themselves with excess manpower; however, utilization rates have now regained pre-Covid levels. Consequently, large IT service companies have begun replacement hirings to help stimulate overall demand.
The hiring surge is not limited to major IT firms, as Global Capability Centers (GCCs), renowned technology companies, and startups are also significantly increasing their recruitment efforts in India. Info Edge reported experiencing double-digit billing growth in the second quarter of FY25, which is often seen as a precursor to increased hiring activities in the IT sector.
Recent market trends show a shift in hiring strategies among IT companies, which had previously experienced overstaffing. This over-hiring caused dips in utilization rates, prompting a reevaluation of employment practices. Now, with improved utilization rates reflecting pre-pandemic conditions, firms are actively pursuing replacement hires, signaling a revitalization of the market and a positive outlook for entry-level job seekers in IT.
In summary, the IT hiring landscape is witnessing a promising resurgence, with hiring growth approaching double-digit rates. Firms are moving beyond earlier overstaffing challenges and are now increasing their focus on replacement hires, alongside GCCs and startups ramping up their recruitment. This trend highlights a broader recovery and optimism in the sector for entry-level talent.
Original Source: www.moneycontrol.com
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