Information Technology-enabled Services (ITeS) companies operating in India have reduced hiring.
This has raised concerns for the IT industry as well as Indian economy.
What is the current scenario in IT sector hiring?
Indian IT companies have reduced their intake by three fourths in spite of solid growth in the revenue.
Many major players are on the route of increasing productivity by investing more of digital business, artificial intelligence and automation as opposed to investing in human capital.
These companies have also increased their on shore intake in developed companies in accordance with the government policies in the nations they are doing business.
What are the consequences expected in Indian job market?
Every IT job in India creates other jobs and revenue growth in allied or associated sectors.
Reduced employment prospects in the ITeS sector will impact the supply chain of engineers.
As these engineers have pursued engineering in hopes of a stable career and future growth opportunities.
This low intake will ultimately affect the engineering colleges which were set up to cater to the needs of ever increasing IT industry.
Restrictive visa conditions imposed on developing countries will also make it difficult for Indians to get a job in companies whose base is set up in developed countries.
Other sectors like commercial real estate which was set up to accommodate the massive workforce will be hugely impacted.
Service sectors geared to provide services for people working in ITeS jobs will also be hit negatively.
