In a rare move that could have repercussions on the economy, India’s outsourcing giants are slashing hiring and relying on existing workers to complete projects. This trend is particularly concerning for engineering students who have long regarded the information technology (IT) sector as their preferred career path. The outsourcing industry, which typically absorbs a significant portion of the 1.5 million engineers graduating each year in India, is experiencing a hiring slump, dampening the prospects for fresh graduates.
In April, leading IT company Infosys announced that its annual revenue growth would hit a six-year low and deviated from its customary practice of setting fresh hiring targets at the beginning of the financial year. “We have a lot of bench with us. They are ready to move into production projects,” stated Infosys CFO Nilanjan Roy at the time.
Industry association Nasscom declined to comment on the hiring slowdown, adding to the overall sense of concern. The bleak outlook is particularly troubling for students as the IT sector has traditionally provided employment opportunities for 20-25% of engineering graduates each year. During the pandemic, when most industries froze hiring, the IT sector stood as a rare bright spot.
Engineering student Gautam from Punjab state, who preferred not to disclose his full identity, explained how the dynamics of on-campus and off-campus hiring have shifted this year. “Normally, on-campus hiring is easier than off-campus. This year, that kind of flipped,” he said. “Some people had their internships or full-time job offers revoked due to cost-cutting.”
The uncertainty surrounding job prospects has led some of Gautam’s classmates to consider pursuing further education as they have lost hope of securing employment immediately after graduation. The prevailing situation casts a shadow of doubt on the future of IT employment, which has long been a lucrative and sought-after sector for engineering students in India.
It remains to be seen how the IT industry will navigate this challenging period and how the government and educational institutions will respond to the evolving needs of engineering students.
