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New Delhi, July 14 Given the subdued results and the prevailing environment, the IT sector is anticipated to adopt a cautious stance towards hiring in the upcoming quarter (July-September period), a report showed on Friday.
The first quarter results of the tech giant in the current financial year shed light on the impact of economic uncertainty, on the overall profit and margin, according to the report by NLB Services.
Tata Consultancy Services (TCS), Wipro and HCL Tech saw a slowdown in headcount additions in Q1FY24. TCH has reportedly delayed the onboarding of fresh hires due to project deferrals and budget cuts.
As companies strive to maintain financial stability and adapt to evolving market dynamics while focusing on business transformation and technological advancements, their subdued Q1 results have triggered a cautious approach toward talent acquisition, and the same is expected to continue, the report mentioned.
“The current scenario necessitates a prudent approach to recruitment, emphasising quality over quantity. Organisations are likely to prioritise hiring for critical positions and specialised skill sets that align with their growth strategies and the evolving needs of their clients,” said Sachin Alug, CEO of NLB Services, a global technology and digital talent solutions provider.
The IT sector’s continued focus on transformation will require a skilled workforce proficient in emerging technologies such as Generative AI, machine learning, cloud computing, cybersecurity, and data analytics, among others.
“Despite muted sentiments, demand for these niche skills will continue to rise 10-12 per cent (on-quarter) in this financial year,” he added.
Overall, the hiring outlook in the IT sector for Q2 FY24 is expected to be cautious yet strategic.
While hiring volumes may remain relatively muted, organisations will focus on optimising existing talent, strategically acquiring specialised skill sets, and embracing emerging technologies, said the report.