Taggd Round-Up 2023: IT Industry

Contributing close to 7.5 percent to India’s GDP in the fiscal year 2023, the Indian IT industry continued to maintain its status as a global  IT hub. India is globally perceived as the largest hub of skilled IT workforce and that edge looks only set to increase. 

2023 was a year of testament for IT companies given the strong global and geopolitical headwinds, but with the rapidly increasing digitization of businesses, AI integration, data-driven practices, and a growing dependency on emerging technologies such as blockchain, the IT sector is bound to rebound, offering opportunities for candidates with a new age skill set.

In this blog, we will summarize prominent trends that shaped hiring in 2023, and provide a brief outlook into the future of hiring in 2024.

• Strategic mix of freshers and experienced professionals: While around 70% of new recruitments consisted of professionals possessing 1 to 10 years of experience, freshers are welcomed openly through campus hiring.
• Recruiters hunting for soft skills: Though technical skills are obligatory in the IT industry, 2023 has shown a remarkable inclination towards interpersonal skills. Soft skills such as learning agility, problem-solving, communication, and adaptability are increasingly valued.
  “While technical excellence is essential, we also look for candidates who exhibit a results-oriented mindset and a willingness to take risks.”
  – Anil Tari, Director IT at Ingram Micro, COEP, IIM C, IIM K
• Hybrid model proven most appropriate: More than half of the IT professionals followed a hybrid mode of working, while companies invited one-fourth of their workforce to work from the office. Work from home has shrunk to nearly 20%.
• Demand for sophisticated technical skills:  In addition to traditional technical skills, recruiters preferred candidates with advanced technical skills such as cloud computing, artificial intelligence, cybersecurity, and data science.
• Impressive salary increments: Despite a decline, salary increments are well-distributed across the levels; however, companies placed a relatively higher emphasis on rewarding and retaining talent at the frontline and middle management levels.
• Count on premier consultancies for talent sourcing: In 2023, IT talent was largely acquired through well-founded recruitment agencies. Internal referrals and hiring through job portals also gathered a noticeable share.
• Tech hub dominance: The predominant presence of a skilled talent pool in major IT hubs such as Bangalore, Pune, Hyderabad, and Chennai, complemented by the economic influence of Gurgaon, underscores access to diverse and competitive expertise.

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•  The hiring of freshers, along with campus recruitment, is likely to experience an upward trend with a projected boost of 4-5%.
• Amid calculative decisions, an estimated 8% surge in demand for contractual employees is anticipated to optimize costs.
• Experts envision the resurgence of the IT industry within a couple of years, thanks to ongoing digitization efforts across various sectors and the increasing reliance on technology in business operations.
• New technologies and trends will continue to evolve, reinforcing the importance of staying updated and acquiring new skills, including blockchain technology, AI, and machine learning.
• The hybrid mode of working is here to stay, while working from home is expected to reduce by nearly 10%, giving rise to the number of employees working from the office.
• The industry remains committed to maintaining a diverse and qualified talent pool.
• Advanced digital and technical skills are anticipated to take precedence over traditional hiring.

As the IT industry charts a course toward a tech-driven future, positive hiring sentiments and evolving strategies lay a promising foundation in the coming years. With a commitment to acquiring new-age skills and flexible work models, industry experts express their confidence in the continued boom of the IT industry.

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