The pace of hiring in the Indian IT sector slowed by 25% in April compared to the same month last year.
Hiring in the BPO sector also fell about 10%, according to a survey by the country’s popular job board Naukri.com.
The report stated the country’s IT firms have begun laying off their employees, but gave no details as to which company has reduced its staff.
The slowdown in the pace of hiring has caused panic among fresh graduates in large cities, including Bangalore, Chennai, and Mumbai, because the news comes as newspapers have continued to report on the possible large-scale layoffs in the sector.
“Though major negative impact seems to be in sectors like IT, BPO, telecom, insurance, and construction, there seems to be an air of caution across all sectors and this volatility is likely to continue for a few more months,” said the chief sales officer at Naruki.com.
But the same report shows an increase in hiring in northern cities of Ahmedabad and Kolkota.
Another study by Experis IT, a subsidiary of staffing firm ManpowerGroup, has predicted that hiring in the sector would fall between 15% and 58% over the next six months, with its authors blaming the slowdown to automation and the shortage in professionals with skills in new technology services.
Only 58% of Indian IT companies would hire during this period, the report added. These firms are looking for people with less experience than professionals who have spent more than a decade in the industry. Employers are busy “up-skilling and re-skilling” their staff, the report added.