IT Fresher Hiring Trends in FY24 likely to decline

In the dynamic landscape of employment, the upcoming fiscal year, FY24, brings forth notable shifts in hiring trends, especially for fresh graduates. Let’s delve into the key findings, sector-specific impacts, potential silver linings, and recommendations for those stepping into the professional arena.

Key Findings: A Decline in Fresher Hiring

Reports and industry experts are aligning in their predictions—fresher hiring is expected to witness a decline in FY24. The estimates vary, with projections ranging from a substantial 40% reduction to a more moderate 15-20% decline, contingent on the report and sector under consideration.

Reasons Behind the Decline:

1. Macroeconomic Concerns: Global uncertainties, potential recessionary fears, and dwindling client orders are prompting companies to adopt a cautious approach towards hiring.
2. Existing Bench Strength: Many companies boast a substantial bench strength of fresh graduates awaiting deployment. This surplus reduces the immediate demand for fresh recruitment.
3. Skill Gap Challenges: Reports underscore a widening gap between the skillset of graduating students and the actual requirements of industry jobs. Companies are becoming more discerning in their hiring processes.

Sectors Feeling the Impact:

IT Sector:

The Information Technology (IT) sector, renowned for significant fresher hiring, is anticipated to face a considerable decline. Reports, like the TeamLease Digital report, project a 40% drop in campus hiring for IT companies.

Other Sectors:

While IT bears the brunt, other sectors, including Banking, Financial Services, and Insurance (BFSI), Communication, Media, and Technology (CMT), and Life Sciences, might also witness a decrease in freshers’ intake.

Alternate Opportunities Arising:

The hiring landscape is undergoing a transformation. Major IT companies, freezing their intake of freshers, have led to the emergence of opportunities in alternative sectors. Global Capability Centers (GCCs) and non-tech sectors like BFSI, CMT, retail, life sciences, and healthcare are expanding entry-level hiring, marking a significant shift.

Insights from TeamLease Digital’s Hiring Outlook:

TeamLease Digital’s hiring outlook for FY24 sheds light on the challenges and opportunities. The report suggests that around 1.55 lakh freshers are likely to be hired in the IT/Tech sector this fiscal, compared to 2.3 lakh freshers in the previous financial year. The muted market sentiments and intensified skills evaluation mechanisms have created a turbulent landscape.

Collaborative Solutions for a Changing Landscape:

Krishna Vij, Business Head at TeamLease Digital, emphasizes the need for a united front. The tech world is evolving rapidly, and industry players need to broaden their hiring horizons. He stresses the importance of collaboration between industry, academia, and government to design relevant programs and curricula, ensuring that the talent pool aligns with the evolving demands.

Conclusion: Navigating the Challenges Ahead

As the employment landscape evolves, staying informed and proactive is crucial. While general trends indicate a decline, individual opportunities will vary based on your field, skillset, and location. Remember, challenges bring forth opportunities for growth. Stay resilient, keep developing your skills, and navigate the job market with confidence!