[India] IT services market cooling down

[StraightEdge]

Infosys Ltd. and Wipro Ltd. were among companies that shocked students nationwide last month, saying they were cutting college recruitment as demand for their services cooled across the globe.

The IT companies hired particularly aggressively in the past two years as the pandemic prompted customers to spend on services and technologies enabling remote working. The top two IT companies, Tata Consultancy Services Ltd. and Infosys, hired more than 284,000 graduates over that period combined.
Now the uncertainty caused by Russia’s attack on Ukraine as well as high global inflation and interest rates are causing customers around the world to hold off on spending. Meanwhile, technologies such as artificial intelligence are increasingly performing tasks previously handled by entry-level IT workers.

This is the 1st time in past 25 years that headcount fell in IT jobs.

Headcount at IT firms sees first fall in 25 years

With the six months to March typically softer for IT companies than the first half because of fewer working days, this fiscal may be the first time Indian IT companies end the year with fewer employees than they had at the start

www.livemint.com

 

[protean]

Ab kuch bhi. In 2021 and 2022, there was a boom because digitization was the theme. Now the industry is consolidating and accommodating the recession in the West.

 

[CallSignMaverick]

They hired a lot more in 2021-22 anticipating rebound, then recession started in international market. On the flip side, GCCs have been hiring more.

 

[migflug]

Things will stabilize in the first half of 2024. Already one can see the acceleration in hiring on LinkedIn in last few weeks.

 

[Raj-Hindustani]

This is world wide trend, not related to India only.

Yes it seems that recession is on the way in US/Europe due to which S/W companies in India are not getting new project. (and this can affect Indian software industry in big way)

Yeah, for some people it's very difficult to understand.

I am a IT professional, in our language we usually say, maket down hai...

Still recession is on, even no better jobs in any major global companies.

We are expecting the things will get change from jan - feb 2024

 

[Darth Vader]

1 A lot of companies are moving to Cloud infrastructure thanks to AWS & Azure especially with the cheaper and faster the internet has become.
2 After Covid a lot of companies are investing in in-house teams as well.
3 With Automation a lot of jobs can be done with little or no effort.
4 Also as people are moving from hybrid to remote working with decent systems you don't need that many support staff either.

Yeah, for some people it's very difficult to understand.

I am a IT professional, in our language we usually say, maket down hai...

Still recession is on, even no better jobs in any major global companies.

We are expecting the things will get change from jan - feb 2024

TBH I would say it's the other way, especially after COVID-19.
its a lot easier to get into IT from what I'm seeing in UK and pay has gone up as well compared to pre covid times

 

[Raj-Hindustani]

1 A lot of companies are moving to Cloud infrastructure thanks to AWS & Azure especially with the cheaper and faster the internet has become.
2 After Covid a lot of companies are investing in in-house teams as well.
3 With Automation a lot of jobs can be done with little or no effort.
4 Also as people are moving from hybrid to remote working with decent systems you don't need that many support staff either.

But you need still people to work on

Example - security guys today's monitor only SIEM Tools, gathering all logs and generate security alerts based on the rule defined.... Example from The 20 different security tools.

So one word - you don't need 20 engineers. Two or three engineers can manage.

But practically, still you need dedicate engineer to manage on platform level to do the configurations level works, that can't be done by security engineer.

Automation still long way to go, believe me i am working on automation things - presently, and- it's very hard to automate the alerts for closer and solution.. Continuously we need to work.. Still many false positive results we get...

AI technology still very far ..... At the present, we need humans to work.

 

[Darth Vader]

But you need still people to work on

Example - security guys today's monitor only SIEM Tools, gathering all logs and generate security alerts based on the rule defined.... Example from The 20 different security tools.

So one word - you don't need 20 engineers. Two or three engineers can manage.

But practically, still you need dedicate engineer to manage on platform level to do the configurations level works, that can't be done by security engineer.

Automation still long way to go, believe me i am working on automation things - presently, and believe me - it's very hard to automate the alerts.. Continuously we need to work.. Still many false positive results we get...

AI still very far..... At the present, we need human to work.

That's why I said a lot of companies are going in-house for that.
2nd Reason I guess GDPR starting to come into play