Economic Survey 2024: Hiring in IT sector slowed significantly in last 2 years

The Economic Survey for the financial year 2023-24 that was tabled by Finance Minister Nirmala Sitharaman on Monday stated that hiring in the IT sector has slowed significantly in the last two years.

Even if hiring does not decline further, it is unlikely to pick up significantly, the survey said.

"However, leveraging the initiatives taken by the government and capturing the untapped potential in emerging markets, exports of business, consultancy and IT-enabled services can expand."


This comes after three major players in India's IT industry, TCS, Infosys, and Wipro, have witnessed a substantial decrease in their combined workforce by almost 64,000 employees in the financial year ending in March.

The outlook for the current fiscal year also appears bleak, with Infosys projecting a modest revenue growth of 1% to 3% for the entire year, while Wipro anticipates a potential revenue decline of 1.5% in the June quarter, with a slim chance of a 0.5% increase. These developments raise concerns for engineering graduates seeking opportunities in the sector.

Despite these challenges, there is a glimmer of hope as global capability centers (GCCs) of multinational corporations continue to expand their presence in India, contributing to employment opportunities in the tech sector. The emergence of new GCCs in the country has been a significant driver of hiring in the industry, a trend that is expected to persist in the coming year.