It’s slowdown in IT hiring: Nasscom

Industry body sticks to 8% to 10% growth in FY18; biz dynamics impacting the sector

Hyderabad: Writing on the wall is clear now as slowdown in hiring by technology majors looks certain. However, industry bigwigs are not explicitly admitting this. Nasscom attributes surging levels of automation and efficiency to hiring slowdown.

The convergence of information, communication and technology (ICT) coupled with surging IoT (Internet of Things) are expected to drive the talent hiring pattern in the days to come.

“Just not Trump and the US market, but over all developments are responsible for this,” said CP Gurnani, Nasscom Chairman and also MD&CEO of Mahindra Satyam.

“Industry is disturbed, sometimes whole communities would be under stress and this is one such time,” he said, while adding “we still stick to the guidance on the 8-10 per cent growth given by us last November and may have to relook in May 2017, after the Q4 results,” Gurnani told the media after the inauguration of ZF Technology Centre here.

Gurnani cited three major reasons for hiring slowdown. Using automation tools has increased in technology firms to serve clients in a better way. Efficiency of workforce has increased considerably and lastly client efficiency is also enhanced simultaneously.

“These are three reasons for a slower growth in hiring. Technology is part of every industry today. It may mobiles, automobiles, healthcare and many others. So, industry is changing on the lines of market requirement,” he explains.

On the growth forecast, he said: “Only primary data is available with us now and secondary data would arrive by May. Then, we will come back with the growth forecast for the next financial year. Digital disruption, artificial intelligence technologies, among others will be in the forefront in terms creating new employment,” he added.

According to him, as the Trump’s decision on H-1B visas has not materially affected the industry as of now, the worry around that issue is unnecessary. The US needs India as much, and we know clearly that “no global company would survive by just selling in domestic market,” he commented.

India would continue to be a strategic partner to US in their growth and the constructive discussions of the industry with government there will be fruitful, Gurnani said. An average American gets about $48k per annum as salary, where as technology firms like ours in the US pay $70 to $75k per annum, he explained. Some agencies like Gartner came out with some numbers, but we still like to wait for secondary data, he said.

“Many technology companies have already started revamping their strategies. We have started focusing on Japan as an alternative market which has the ageing population issue. India with its knowledge resources can be useful there. These efforts will give positive results,” he felt.