New Delhi, Nov 21 (IANS): The recruitment for the IT sector has remained muted, while the demand for talent with functional skills such as Development, ERP, Automotive Design, Testing, and Administration, among others, has surged in the second quarter (Q2) of FY24, a new report revealed on Tuesday.

According to the business solutions provider Quess Corp, about 65 per cent of the aggregate demand emerged from Development, ERP, Automotive Design, Testing, and Administration skills.

In addition to these functional skill suites, incremental demand for skills related to Gen AI, Data Science, DevOps, Cloud, Automotive Engineering, Cyber Security, Networking Specialists and more were also noted in Q2.

"For the first time in recent history, large IT services companies have shown a decline in headcount and reduced guidance values, signalling a collective exercise of caution in navigating the future," said Vijay Sivaram, CEO of Quess IT Staffing.

"Opportunities abound for those who invest in upskilling, with a notable shift in the way businesses operate, as over 85 per cent of Indian businesses plan to invest in AI within the next two years," he added.

Moreover, the report mentioned there is a noticeable uptick in fresher demand within sectors such as Engineering, Manufacturing, Healthcare, and Retail.

Skills pertaining to Data Engineering, Development (Java, Angular), ERPs, Power BI, Network Engineering, Cybersecurity, and UI/UX are particularly sought after among early career professionals.

According to the report, the IT sector in India is experiencing a notable transformation as it expands beyond its initial technology hub, Bengaluru.

Emerging tech hubs like Pune, Hyderabad, Mumbai, Chennai, and Delhi NCR are gaining prominence. This shift is driven by their flourishing tech industries and the presence of both domestic and international companies, propelling them to become established, mature technology hubs in India.

City-wise trends for technology hiring demand in India are relatively concentrated, with the top five cities accounting for over 79 per cent of all job postings.