NLB Services Forecasts Robust 12-15% Surge in IT Sector Hiring for 2024

The Indian IT sector is gearing up for a significant hiring surge, with expectations set at a robust 12-15% increase in the calendar year 2024, as projected by NLB Services. The journey through 2023 presented a dynamic hiring landscape, marked by a dip in overall intent to hire from 51% in Q2 FY22 to 36% by Q2 FY23. The IT sector, grappling with global recession and altered business synergies, experienced a challenging phase in the initial quarters of this year, leading to a contraction in headcount during Q1 FY24.

Major corporations across various sectors, notably technology, e-commerce, finance, and education, initiated significant layoffs due to factors such as the global economic slowdown, ongoing conflicts, inflation, and reduced funding in the startup ecosystem. However, a positive shift was observed in Q2 FY24, with key IT firms reporting a 3-10% average increase in net profits. This growth was attributed to new wins, multi-year renewals with existing clients, and increased investments in technology.

Skill sets that continued to shine during this period included software development (28% demand), SAP expertise (12% demand), automotive design (14% demand), and testing skills (12% demand). Despite the initial slowdown, the overall hiring sentiment remained optimistic in 2023, driven by the expansion of sunrise sectors such as Electric Vehicles (EVs), creating a demand for skilled talent in engineering, manufacturing, and research and development.

The EV sector, in particular, witnessed a remarkable 40-45% growth in jobs in 2023 compared to the previous year, and the hiring momentum is expected to surge further by 15-20% in 2024. Notably, the third quarter of the fiscal year brings a positive outlook, especially in green technology, electric vehicles, and increased emphasis on AI and cybersecurity.

Corporations are increasingly focusing on diversity and inclusivity in their hiring strategies, with a 26% rise in diversity-focused hiring compared to the preceding year of 2022. The IT sector anticipates a strong hiring expectation, estimating an increase of approximately 8-10% in Q3FY24.

Looking ahead to 2024, the IT hiring momentum is expected to gain traction in the early months, driven by the adoption of new technologies such as big data, cloud computing, and artificial intelligence. NLB Services predicts an overall surge of 12-15% in IT sector hiring in CY 2024, especially with the stabilization of the global economy. The skill sets in high demand for 2024 include AI/ML experts (10-12% increase), DevOps specialists (10-12%), Cybersecurity experts (12-15%), Blockchain developers (8-10%), Cloud Architects (10-12%), UI/UX Designers (12-15%), and Data Scientists (10-12%).

As companies gear up for the evolving technological landscape, upskilling and reskilling initiatives will remain a key focus, ensuring a skilled workforce to meet the demands of the rapidly advancing IT industry in the coming year.