According to a report from Moneycontrol, Placement coordinators and heads from different universities and colleges have informed that no Indian IT companies have made it to their campuses so far.
They say that August to September is a peak time for IT companies to get the best talent from colleges and universities, not this time. Even though entry-level candidates were cost advantageous.
I have heard that the people who were hired as freshers last year are still on benches.
Dr N L N Reddy, the Head of Placements at the Chaitanya Bharathi Institute of Technology said, “IT services companies are in wait-and-watch mode.”
One should know that wages are a big spend for IT companies which is why they hire freshers so that they get ease in the wages bill.
Sriram Rajagopal, Managing Partner at talent sourcing firm, Diamondpick, told Moneycontrol,” You hire entry-level (workers) because they become productive in six to eight months, it helps them manage the delivery costs. The 2023 Campus season is going to be muted. Wherever possible, the backfill has to be at the entry-level to reduce costs. So it’s not going to be zero. However, it’s going to be substantially muted.”
I want to highlight one point here, Generative AI is increasing and it is helping employees to increase their productivity. Therefore, this non-hiring could continue to next year as well.
It is a significant development because IT companies hire freshers in mass volumes. If there is less hiring from them then it is a matter of concern.
I think, the IT companies have already hired a mass number last year which might be in surplus. Therefore, a slowdown in hiring this year might be natural.
Whereas, with the increasing popularity and productivity of Generative AI, there could be a more serious hammer on the future hiring of freshers.