How do you evaluate the growing layoff trend and decode the underlying circumstances in Indian context? Will global layoffs jolt India’s IT sector?
SR Any of these trends has a pattern behind it that we need to be aware and cautious of. According to a NaukriJobspeak report, hiring activity fell to 2% growth in 2023 Jan, vis-à-vis 2022 Jan. 2022 Jan however, had shown a 22% increase over Jan 2021, with hiring activity growth in major sectors like IT-Software (+80%), Banking/Financial Services (+31%), Telecom (+48%), Pharma (+29%).
This pattern has an issue when the dots don’t join up. Revenue in the IT Services market is projected to reach US$18.85bn in 2023, with an expected CAGR of 11.02%. Though there were a few organisations that could achieve a growth rate of an average 19% in 2022, there were multiple reports (e.g one from Crisil) that we ignored back in the mid of 2022, that clearly showed a dip in revenues to around 12-13% in FY23. At these top line growth levels, an increase in 80% hiring across the IT sector...
