In FY25, IT firms ‘will be back’ at campuses to build capacity
NEW DYNAMICS. In a tough demand environment, fresher hiring can be an e‘ective cost play
The IT sector, after a full fiscal year of low-to-no fresher and entry-level hiring, will see a return to the campus in FY25, according to HR analysts. As the deal pipeline swells, attrition comes down, and utilisation levels peak amid a tough demand environment, fresher hiring can be an eective costplay for IT firms.
The IT sector collectively net added 70,000 entry-level talent in FY24, the lowest intake over a two-decade period. On a low reference base, the year ahead could well see 100 per cent y-o-y growth, even if fresher intake hits the moderate 1.5 lakh mark, stang firm Xpheno’s analysis notes.
HIRING OPTIMISM
Even as the revenue growth for the sector was muted, the commentary on hiring was positive. IT bellwether TCS has already started hiring freshers and made oers at priority institutions. Chief HR Ocer Milind Lakkad said during Q4 results that the fresher hiring target will be similar to past years. The company
TCS has already started hiring freshers, and made oers at priority institutions (file photo)
previously had a 40,000fresher hiring target. Bengaluru-headquartered Wipro, too, during Q4 results, said that although there is no specific target, it will induct freshers this year and honour all previous oers made.
TALENT CHAIN BROKEN
Prasadh MS, Workforce Research, Xpheno, notes that as headwinds persisted, the IT sector recorded its second consecutive fiscal of low-to-no fresher and entry-level hiring. The tech talent building process has hence broken, with enterprises staying away from campuses for over two cycles of intake.
“This is not a sustainable hiatus
for large IT enterprises and the tech sector as a whole. Enterprises are well aware of the long-term cost implications of not investing in and training freshers for future capacity. Despite the promises of AI that bellwethers have spoken about, the need and urgency to go to campus are clear. Campus hiring will, hence, pick up this year,” he adds.
COST-CUTTING
Amidst the tough demand environment, hiring freshers is seen as an eective cost play for IT companies. The mega deals being signed by the companies indicate that the focus is on building operational eciencies by reducing costs while hiring to meet customer demand. Further, with Generative AI integrated into platforms, companies are also looking to hire and train employees to keep up with the deal pipeline, notes Krishna Vij, Business Head, TeamLease Digital.
“Companies are trying to keep the cost low, and freshers come at a competitive cost, which will help companies maintain overall margins. Further, attrition has gone down, and utilisation levels have peaked, which suggest that fresher hiring will see a spike. However, whether the demand will sustain for the entire year, is to be watched,” she said.
Aditya Mishra, CEO, CIEL HR Services, notes that the hiring uptick will be in tandem with the revenue growth of the companies. Further, the focus this time will be hiring quality talent and building a talent pipeline. “Going forward, freshers’ knowledge of newer technologies, problem-solving skills, and domain knowledge of specific industry sectors will be tested. Fresher hiring will also make good for the lateral exits happening,” he adds.