With the news of recession hitting us sooner than ever, it seems recruitment trends in Information Technology are all set to go through a change. Of the 41 multinational companies (MNCs), 45% plan to hire in the final quarter of FY23 globally, as per the Global Employment Outlook for Q4, 2022. “The lay-off which started in the second quarter of FY23 is a temporary phenomenon. It is expected to regain its normalcy in the fourth quarter Q4 in this fiscal, in terms of India,” Siva Prasad Nanduri, chief business officer, TeamLease Digital told FE Education. Furthermore, the report showed that India at 54% and China at 46%, respectively, have the strongest hiring intentions in the final quarter of this fiscal.
As India is a big market in terms of being a solution provided to the US industry experts believe that its time to reduce the dependency. “Reducing dependence on the US-based resources, and finding alternative markets in emerging economies such as LATAM (Latin America; Brazil, Mexico, Chile) as well as growing domestic business will help increase the customer base even during the recession,” Rajendra Prasad Sharma, professor, Indian Institute of Foreign Trade (IIFT), said.
Interestingly, the World Economic Forum 2021 Future of Jobs report revealed that five million jobs may be replaced with artificial intelligence, whereas, over 97 million new roles are anticipated to emerge. “Companies are now expected to choose cost-effectiveness over demand-based hirings. This will create more opportunities for freshers,” Supaul Chanda, vice president, Experis IT, a subsidiary of ManpowerGroup, said. He further explained that there seems to be emergence of skill consolidations. However, PWC 2022 Global Workforce Hopes and Fears Survey showed that 39% of employees conveyed that they’re concerned about not being allowed to upskill.
Furthermore, experts opined that as the uneven economic growth continues with some markets recovering, soaring inflation and high cost of living can be a matter of concern for global migration. “Despite the high recognition and image of Indian IT services in global markets, recession in developed economies such as the US will make the industry players move with caution,” Sharma added.