Indian IT Sector Hiring Growth To Drop To 6% During FY16

The Information Technology (IT) industry in India is one of the biggest talent markets in the world and IT professionals in India are always in high demand both in India and overseas. The Nasscom HR Summit is one of the top HR conferences in the country that takes place on an annual basis. During the summit, R Chandrashekhar the president of Nasscom stated that the IT sector hiring in FY2016 is expected to drop to 6% when compared to the 9% of FY2015.

The IT industry is expected to hire around 230,000 people which will be spread across ITES, BPO and e-commerce industries. The IT industry currently provides jobs to around 3.5 million people, out of which 200,000 are foreign nationals and 350,000 are women. Most of the talent sourced comes from tier 2, 3 and 4 cities in India.

In a statement, R Chandrashekhar said “The HR industry is in for great challenges and war for talent will shift from ‘scale to skills’. The industry will see more lateral hirings this year due to tech invasion across spheres of segments.”

Chandrashekhar stated that one of the main reasons for the drop from 9% to 6% in hiring is because a number of manual processes have now been automated, especially in the HR niche. This has increased the productivity of businesses but at the same time has reduced the need for manpower. He also stated that the role of the HR department in Indian companies would be challenging as they look to hire and retain top talent from the IT sector.