Amid Tougher Times For Indian IT, Campus Hiring Takes A Hit
Many large Indian companies are reskilling their existing employees to help them stay relevant with new technologies.
Edited by Surajit Dasgupta | Last Updated: March 25, 2017 18:59 (IST) Surajit Dasgupta
Analysts say that many IT roles will soon become redundant due to the impact of automation.
Automation is eating a lot of entry-level jobs
Analysts say many IT roles will soon become redundant
IT companies are increasing hiring overseas due to visa concerns
For many fresh engineering graduates in India, campus placements in large Indian IT companies have been the path to a global career. But that window of opportunity is narrowing down. Indian IT companies are hiring fewer and fewer graduates from campuses in India and the number is likely to come down further in the future. "In a good year, freshers recruited from campus by the software services companies were around 150,000. This has been progressively coming down and in the academic year ending 2017, it will be between 65,000 to 90,000," says Kris Lakshmikanth, founder CEO and MD of Head Hunters India, a Bengaluru-based recruitment services provider.
"Progressively, I view hiring from campus coming down year on year between 15 per cent and 20 per cent," he says. "Getting a job in IT will become much more difficult with time."
Automation is eating a lot of entry-level jobs. Analysts say that many IT roles will soon become redundant due to the impact of automation on these jobs. "Companies want to eliminate at least 20 per cent of the jobs through automation. Progressively, this will go up to 35 per cent to 40 per cent over the next three years," adds Mr Lakshmikanth.
The attrition levels are also coming down. Lesser attrition means lesser need to replace/hire people. "In 2016-17, the attrition level has come down by nearly 40 per cent," he says.
Software companies are increasing hiring overseas due to concerns over visa issues. "Overseas recruitment definitely has an impact on hiring in India," according to Mr Lakshmikanth.
About half-a-dozen pieces of legislation have been introduced (and reintroduced) since January 2017 to curb alleged misuse of the H-1B visa regime from both Democrats and Republicans. The US has indicated that the H-1B visa regime would part of the larger immigration reforms package that the new Trump administration is working on. (Also read: Amid H-1B challenges, Indian IT speeds up acquisition of US firms)