The US economic worry has become a significant barrier for the IT industry. A lack of new projects is another issue that could affect the hiring of new engineers.
A sizable portion of engineering graduates are known to receive reliable employment from companies like TCS, Infosys, and Wipro each year.
According to The Hindu Business Line (HBL), the Indian IT sector is expected to hire only 155,000 new graduates this year compared to 300,000 in a strong year, meaning that recent engineering grads may have a harder time finding employment this fiscal year.
The analysis that referenced statistics from staffing services company Team Lease predicted that fresher hiring will be at its lowest in the financial year 2023–24 (FY24), following two years of healthy recruitment levels during the pandemic years.
The hiring of 390,000 recent graduates by the IT sector in FY22, which represented almost 26% of the whole engineering class of 2022, was particularly exciting. To carry out the deals in digital transformation, hiring's were made. According to the data, the number of hires dropped to 280,000 in FY23.
The uncertainty surrounding an American recession has become a significant barrier to moving forward with ongoing projects. The research noted that there is also a lack of new projects, which has affected the hiring of new engineers.
Financial data for the first quarter of the current fiscal year are available and present a similar picture that indicates a decline in hiring. In their financial outlook commentary, IT companies are increasingly employing phrases like "utilization of existing bench strength" and "upskilling".
The data paint a different narrative than top IT sector experts who claim that the introduction of artificial technology will have little to no effect on the work of freshly hired engineers. Less than 10% of the graduating class is likely to be hired by the top five IT companies. While 10% might sound like a lot, the HBL analysis pointed out that it is actually less than half of what these organizations used to hire.
A sizable portion of engineering graduates are recognized to receive dependable employment from companies like TCS, Infosys, and Wipro each year. The forecasts for these businesses, though, are different this year.