Despite global headwinds and geopolitical tensions over the past year, the Indian economy has remained resilient with the continued adoption of new-age technologies in FY23, a Quess Corp report said. The report revealed that the demand for specific technology skills is consistently rising even across non-tech industries. ERP, Java Full Stack, Data Analytics, Cloud, and Infra Management have emerged as the top skills in demand, it added.
Data from the report indicates that while FY22 saw a significant increase in workforce demand with many firms displaying “talent hoarding” behaviors, this momentum and speed of hiring has tapered down for traditional tech product-based companies in FY23. However, there has been an increase in technology adoption across non-tech industries. This has led to a redistribution of skills, resulting in a correction of demand for professionals and a decrease in associated price premiums within the IT sector.
“Given the global banking crisis and an unprecedented wave of employee layoffs, hiring has been muted in Q4FY23. While hiring requirements continue to come in as most firms are still in a wait-and-watch mode, GCCs and Indian enterprises continue to add some numbers whereas services has seen a slowdown. We do expect to see some positive resurgence in the coming months as organizations make plans to backfill critical skills but may reduce their bench strength,” Vijay Sivaram, CEO, Quess IT Staffing, said.
He added that technology is the driving force behind business success as organizations pivot towards a digitally-driven strategy with better products, offerings, and digital roadmaps. This expansion of technology is a major contributor to economic growth, and a broad analysis of the Indian tech job market indicates that the demand for tech roles is consistently increasing.
ERP, Java Full Stack, and Data Analytics among the top skills in demand
Data from the report reflect that the most sought-after skills suites in the IT sector include Resource Planning (ERP) (20.84%), Java Full Stack (27.62%), Data Analytics (16.37%), Cloud (16.34%), and Infrastructure Management (25.94%). Notably, around 82% of the aggregate demand emerged from these five skill sets. The intent to hire professionals with these /skills will continue to rise as tech and non-tech companies digitize to promote their business growth and innovation. Apart from this, demand for professionals adept with niche tech skills related to Artificial Intelligence and Machine Learning, Big Data, 5G, Cyber Security, DevOps, RPA, and UI/UX also held a considerable share of total demand.
To bridge the talent demand-supply gap, the industry can augment manpower supply by leveraging Center of Excellence programmes which will facilitate swift recruitment schedules for conventional technology skills. Companies can also employ Hire-Train-Deploy programmes to afford candidates the chance to bolster their proficiency and remain current with contemporary technologies.
City-Wise Demand for Skill
Tech talent recruitment has been largely dominated by Bangalore (55.23%), Hyderabad (12.16%), Pune (9.95%), Chennai (9.48%), NCR (5.67%), and Mumbai (5.30%). However, remote working mandates and improved data services infra have enabled and encouraged an upswing in hiring across Tier 2 and 3 cities, particularly in E-Commerce and Financial Services firms. Companies are now deploying associates in cities such as Jaipur, Coimbatore, Indore, Kochi, Gulmarg, Siliguri, and more, creating a pool of employment opportunities for professionals residing in these regions. Remote working trends in Indian IT are expected to continue, offering companies access to a larger talent pool, and employees the flexibility to work from anywhere.
This report is based on data from Quess IT Staffing’s operations which map demand and supply in the talent ecosystem. The findings speak to the evolving aggregate tech hiring demand and related insights to give leaders a clear understanding of what the talent market looks like. This report focuses on the quantum of demand for the time period of FY23 (April 22 – March 23) vs. FY22 (April 21 vs March 23).