Daijiworld Media Network – Mumbai
Mumbai, Sep 4: India’s $283-billion IT services industry is facing a hiring slowdown, with overall recruitment dropping 10% between July and August, according to staffing firms. The decline, attributed to global economic headwinds, higher US tariffs and weaker discretionary spending, has dampened demand for traditional technology roles, even as hiring in emerging tech continues to surge.
Data from Teamlease shows a 2–3% fall in demand for legacy tech jobs in the quarter ending September 30. In sharp contrast, skills in artificial intelligence (AI), machine learning (ML), cloud, data and cybersecurity remain in strong demand.
The June quarter had reported a modest 3% year-on-year increase in headcount, with net additions of 9,000 employees. However, job additions at the top six IT firms, including TCS and Infosys, slipped to just 3,800 — nearly 72% lower than the March quarter, as per ET.
Xpheno’s report highlighted that active openings for legacy tech jobs fell to 43,000 by August-end, down 9% month-on-month and 24% year-on-year. Compared with September 2022, this marks a steep 41% decline. “The demand volume is fast approaching its lowest point in three years, with no clear signs of a turnaround,” said Kamal Karanth, co-founder of Xpheno.
Teamlease Digital CEO Neeti Sharma pointed out the divergence in trends. “Companies are hiring in higher numbers for skills in cloud, data, cybersecurity and AI/ML coding, while the legacy tech stacks are not being hired for. Hence, the dip in hiring,” she explained.
Kapil Joshi, CEO of IT staffing at Quess Corp, said demand in August dropped nearly 20% compared with July, citing macro uncertainties and fresh US tariffs as key factors behind cautious hiring.
The September quarter is expected to close weaker than anticipated, with the October–December period likely to remain muted due to festive breaks in India and holidays in the US and Europe.
Despite the overall slump, demand for AI and cybersecurity talent is outpacing supply. Teamlease estimates India needs more than 500,000 AI-skilled professionals, but only one engineer is available for every 10 open roles, pushing salaries sharply higher, particularly in GenAI.