In a recent study conducted by NASSCOM, it was highlighted that hiring fresh talent in the current financial year (FY17) is expected to be lower as compared to last year. The reason behind the back shift is being linked to the pressure faced by Information Technology or the IT companies to focus on margins and automation of jobs.
As per records, new jobs created in the IT sector in FY 2014-15 was about 2.20 lakhs while those in the FY 2015-16 was of 2 lakhs. And for the current financial year, the additions are going to further slow down.
The president of National Association of Software and Service Companies (NASSCOM), Mr. R. Chandrashekhar did not give any exact figure, rather proclaimed that the expectations are laid according to trends. Accordingly to him, fresh hiring is either gently declining or has become completely static.
However, he also mentioned that overall hiring is not going down. It is just that its pace is affected and is, therefore resulting in the same.
According to him, adoption of higher productivity by cutting down the strength of manpower and focussing on automation is being looked at by Indian companies because of cost effectiveness that comes with it as the country’s economic levels are different.
The reasons behind loss of jobs in India are automation within the country and also because of the new set of jobs that are speared towards us due to offshoring and technological changes.
In the end, Mr. Chandrashekhar also added that they are still quite optimistic for the next two years as India’s fundamentals are stronger as compared to other countries around the world.