Hiring trends in IT sector expected to surge by 12-15% in 2024: NLB Services

NEW DELHI: Despite the high IT attrition rate in the last three years, reports express optimism among job seekers in 2024 with the increasing adoption of new technologies such as big data, cloud computing and artificial intelligence. According to the NLB Services, the overall hiring in the IT sector is expected to surge by 12-15% in calendar year 2024.

The hiring intent in India decreased from 51% in Q2 financial year (FY) 2022 to 36% by Q2 FY23 owing to global recession and shift in business synergies. The IT sector faced major layoffs due to global economic slowdown, ongoing conflicts and inflation. Among the various sectors affected, the technology sector experienced the most severe impact, closely followed by e-commerce, finance, and education, the NLB Services CEO Sachin Alug said.

Although Q1 FY24 saw a significant attrition, in Q2 FY24, the key IT firms reported a 3-10% average increase in their net profits.

"The positive growth trajectory was largely influenced by IT players securing strong new wins, expanding multi-year renewals with existing clients, and growing investment into technology, etc,” it said.

The top skill sets that have continued to be in demand include software development (with 28% demand), SAP expertise (12% demand), automotive design (14% demand), and testing skills (12% demand).

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Positive hiring trends

Sachin Alug anticipates an optimistic growth on both technological and non-technological fronts in terms of hiring in 2024. The grim job market is expected to change and the overall hiring in the IT sector is anticipated to increase due to the surge in Global Capability Centres (GCCs) and the global economy settling down comparatively. In all, the sector saw a growth of 40-45% in hiring in the year 2023 compared to the previous year and it is expected to increase by 15-20% in 2024.

“From a quarter perspective the initial quarter will notice an average 8-10% growth in hiring, followed by Q2 and Q4 demand percentage rising up to 12-14%,” Alug said.

In the year 2023, domains such as Electric Vehicles (EVs) with strong demand for skilled talent in areas such as engineering, manufacturing, and research and development maintained the hiring trends. It has also been creating new job roles in battery technology, charging infrastructure, and software development.

Fostering diversity in recruitment

2023 saw significant layoffs by major corporations. However, the companies are planning to foster diversity and inclusivity within their recruitment strategies, he said.

“This shift is propelled by various factors, including the growing awareness of the benefits of a diverse workforce and the increasing number of women and other underrepresented groups entering the workforce. Throughout the year, there was an evident rise of 26% in diversity-focused hiring compared to the preceding year of 2022,” Sachin Alug said.

He said that the third quarter of this fiscal year has a favorable outlook. Promising prospects are foreseen in green technology, electric vehicles, and an increased emphasis on AI and cybersecurity, he said, adding that the IT firms foresee a strong hiring expectation, estimating an increase of approximately 8-10% in Q3FY24.

Hiring trends in IT sector

This year, upskilling and reskilling will remain a primary objective of the companies. The top skill sets and profiles and the expected increase in hiring for this year is given below, as per the NLB Services.

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