Following early signs of an American recession, TeamLease Services said on Wednesday that hiring in the information technology (IT) industry, which had been booming over the previous two years, is beginning to slow.
This is true even though large IT companies like Tata Consultancy Services (TCS) and HCL Tech have reported substantial attrition.
According to Ramani Dathi, the chief financial officer of TeamLease Services, “there are early symptoms of a slowing hiring trend, but for this quarter, we are not seeing any impact in terms of the number of available positions in the IT business.”
Dathi referred to the present hiring intentions as “good enough” in light of the ongoing high attrition rate. If not for new roles, she continued, “even the replacement of attrition is being done, and that is contributing to a larger percentage of hiring on a quarter-to-quarter basis.”
Dathi’s comments came a day after HCL Tech revealed an attrition rate of 23.8% for the period of April to June 2022, compared to 11.88% in the same quarter the previous year. HCL reported that the attrition rate was 21.9 percent in the quarter ending in March. According to brokerages, attrition is projected to continue throughout the upcoming quarter.
HCL Tech, on the other hand, is more upbeat about demand than it was in April and plans to add 30,000 to 35,000 new employees in the current fiscal year, which is a 50% increase over the previous one.
On the other side, TCS’ attrition increased from 17.4 percent to 19.7 percent in the quarter under review. The IT sector’s earnings season began on July 8 with TCS.
The hotel, healthcare, and tourist industries, among other businesses, are recovering strongly post-COVID, as are other industries that have taken far longer to do so. The TeamLease CFO stated that hiring intentions were beginning to increase for this quarter.
Additionally, she stated that all industries have the most opportunities for entry-level positions, with the most demand being for careers in sales, marketing, IT, and engineering.
She added that although there appears to be a decrease in hiring intentions in the industrial and infrastructure sectors compared to the previous 18 months, they are still greater than they were prior to COVID-19.
Additionally, despite the fact that businesses are trying to decentralize jobs by establishing smaller offices in smaller towns, they have not yet taken any meaningful action because the majority of hiring occurs in metro areas.
“That’s partly because such smaller locations have inadequate infrastructural facilities for businesses to operate from. Therefore, among the new employment or recruiting trends, rural is still at the bottom, according to Dathi.