After a challenging 2017, the Indian IT Industry has scripted an impressive turnaround this year. Every objective parameter indicates that the sector is growing and is expected to continue on this trajectory in the near future.
According to every industry indicator, the Indian IT industry is back on track. Revenues and margins are improving, hiring is picking up speed, and massive up-skilling programs are underway to ensure workforce agility.
But before we analyze these developments, in order to fully appreciate the importance of this recovery, let’s take a quick look at the various issues that the industry battled last year. It would be safe to say that 2017 was one of the most challenging years for the Indian IT industry. Amidst a rise in the global protectionist policies, companies failed to deliver expected growth numbers and laid off thousands of employees. According to one estimate, more than 56,000 workers were handed the pink slip in the industry last year, which experts believe make it worse than the 2008 financial crisis.
Most industry giants, including, Cognizant, Wipro, Infosys, Capgemini, Tata Consultancy Services (TCS), and Tech Mahindra saw their headcount reducing (even if marginally) in at least one of the quarters in 2017. Hiring and campus recruitment activity saw a drastic decline, as companies struggled to adapt to changing business environments. However, since the beginning of this financial year, and particularly in the quarter ending in September, an undeniable positive uptick has been recorded.
Soaring high
Prominent Indian IT companies have added nearly 38,000 employees collectively in the second quarter this year. There is a significant improvement from last year and more than double the number in the first quarter in 2018. As a matter of fact, TCS made the highest net addition to its employee strength in the last 12 quarters and announced its plans to hire 28,000 employees in campus placements. However, for most companies, a part of these numbers also consists of the employees that have been hired outside India, as they are under pressure to increase local employee count.
This story is from the December 2018 edition of People Matters.
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This story is from the December 2018 edition of People Matters.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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