How hiring in the Indian IT industry is witnessing a change and how to prepare for that

There is no denying that India exhibited great fortitude and versatility against the backdrop of a catastrophic global pandemic. Spearheading the globe in the direction of change, India was and is amongst the few countries at the forefront of technological transformation and innovation. As the pandemic compelled businesses to move online, Indian enterprises catalysed their digital transformation plans. The overnight digital pivot propelled the need for tech talent across all categories of companies.

Beginning in 2020, the hiring frenzy in the tech sector has refused to decline. According to reports, the IT services industry created over 5,00,000 new jobs in the FY2021-22. And even as the $200 billion Indian IT industry wars against unprecedented attrition, the sector is keen on finding recourses to meet the demands for tech talent. All in all, what began as a disruption in 2020 has now shifted the paradigm of tech hiring in India.

A boom in hiring activity
The pandemic accelerated digitalisation by five to ten years. Since the outbreak of the pandemic, companies are increasingly investing in remote work collaboration tools, cloud technologies, digital customer outreach and automation and AI to streamline complex tasks. Subsequently, the demand for tech talent has skyrocketed and hiring has picked up pace. According to the Indian Staffing Federation (ISF), the Indian IT and ITes industry intends to hire 8,00,000-10,00,000 people by the end of 2023. As the volume of hiring rises, we are witnessing a variety in job roles and skills.

Most in-demand job roles
With Metaverse, Web3 and Industry 4.0 looming on the horizon, the rise in demand for specialised roles and skills is inevitable. While data engineers, programmers and developers continue to be at the forefront of the digital transformation, new roles are springing up rapidly. UI/UX designers, Low Code No Code developers, Android/iOS app developers, AR and VR technicians and DevOps engineers are some of the most sought-after tech talents in the current landscape. Additionally, cybersecurity engineers, blockchain developers and Unity 3D developers are gaining prominence as well.

A candidate-driven market
While the pandemic spurred an unprecedented demand for tech talent, the growth in supply falls behind. The gap in demand and supply has inevitably tipped the scales in favour of job candidates. Even before the pandemic, the Indian tech talent market was battling a chronic dearth of talent. With only a limited talent available, companies are waging a war for talent and resorting to talent poaching. With a constant demand for talent, candidates are ruling the roost and resigning for greener pastures. Nearly all companies in the IT sector are facing record-high attrition levels.

Mix and match of hiring strategies
With attrition rates hovering around 20% in the Indian IT sector, tech firms are shifting their hiring tactics. Nearly, all industries are collaborating with online hiring platforms to leverage their expertise and technologies like AI and automation. The IT industry has resorted to hiring contractual employees and freelancers for hard-to-fill roles. To deliver high-value projects on time and enjoy cost savings, several tech firms are adopting contract hiring solutions. Additionally, firms have widened their horizons to hire candidates from non-IT backgrounds and train them later. This is mainly driven by the shortage of skilled talent, the high attrition rate and the growing demand for soft skills.

A diverse and distributed workforce
With remote and hybrid work gaining a status of permanence, IT recruiters are casting a wider net to scout talent. The IT industry has warmed to the idea of expanding its geographical footprint in pursuit of skilled talent. Tech firms are increasingly hiring from smaller cities instead of recruiting rivals in metropolises. Not only that, several companies are hiring employees from different countries to meet urgent talent requirements. As a result, contract hiring, freelancing and remote staffing are witnessing an uptrend. Additionally, diversity-first hiring is making inroads into the IT industry.

Closing Thoughts
As one door closes, another opens and it has exactly been the case with the Indian IT industry. In face of talent shortage, high attrition and fierce competition, the Indian IT industry influenced a paradigm shift in hiring by turning to unconventional talent, from non-IT graduates to contract hires.

(The writer is co-founder & business head, BridgenTech)