India’s IT sector is experiencing a notable transformation as it expands beyond its initial technology hub, Bengaluru.
The demand for talent with functional skills such as Development, ERP, Automotive Design, Testing, and Administration, among others, has surged in Q2FY24, according to the ‘Skills Report’ by business solutions provider Quess Corp. However, hiring remains muted as organisations have adopted a wait-and-watch approach in light of geopolitical tensions, putting a hold on discretionary spending.
According to Quess, 65 percent of the aggregate demand emerged from the top 5 skill suites, namely Development (36 percent), ERP (11 percent), Automotive Design (6 percent), Testing (6 percent), and Administration (6 percent). In addition to these functional skill suites, incremental demand for skills related to Gen AI, Data Science, DevOps, Cloud, Automotive Engineering, Cyber Security, Networking Specialists and more were also noted.
Fresher hiring outlook
Recent industry discourse has centred on the temporary suspension of fresher hiring in the past few quarters. The strategic decision to delay or avoid hiring freshers is a response to diminished business demand. Companies are prudently managing discretionary costs, prioritizing short-term cost optimization while incorporating fresher hiring into their long-term project and expansion plans.
According to Quess, there is a noticeable uptick in fresher demand within sectors such as Engineering, Manufacturing, Healthcare, and Retail. Skills in Data Engineering, Development (Java, Angular), ERPs, Power BI, Network Engineering, Cybersecurity, and UI/UX are particularly sought after among early career professionals.
City-wise recruitment trends for tech professionals
India’s IT sector is experiencing a notable transformation as it expands beyond its initial technology hub, Bengaluru. Emerging tech hubs like Pune, Hyderabad, Mumbai, Chennai, and NCR are gaining prominence. This shift is driven by their flourishing tech industries and the presence of both domestic and international companies, propelling them to become established, mature technology hubs in India.
City-wise trends for technology hiring demand in India are relatively concentrated, with the top 5 cities accounting for over 79 percent of all job postings. However, the rapid development of infrastructure, skill diversity, remote work, and governmental initiatives such as smart cities have enabled an upswing in hiring across Tier 2 and 3 cities, particularly cities like Ahmedabad, Mysuru, Jaipur, Indore, Coimbatore, Kochi, and others.