India’s $100 billion outsourcing industry is expected to witness a strong growth in 2014 due to improving fundamentals in the US, the biggest market for domestic IT companies. However, for the lakhs employed by the IT sector and the many who aspire to join the industry next year, 2014 could turn out to be another bad year.
The IT industry will be only recruiting nearly 1.5 lakh employees in 2013-14, which is 17 per cent lower than 2012-13, according to industry body Nasscom estimates. Campus hiring will still be under pressure next year too.
This is because more and more companies will resort to just-in-time hiring due to abundant labour and predictable demand, according to global brokerage Nomura. Earlier companies used to hire a large number of fresher’s and put them on bench till they become billable.
These hires were utilized only when a project comes. Now, companies want to hire only when a deal is about to close to cut down on costs. Credit Suisse says IT companies are increasingly turning to non-engineering graduates as the process of software development has become less complex in certain areas.
