The enrollment in engineering and technology courses has been on a consistent decline in recent years, a trend expected to escalate further due to a slowdown in hiring by IT companies, as stated by Neeti Sharma, co-founder and president of TeamLease Edtech. Between 2016-17 and 2020-21, BTech enrollment dropped from approximately 40 lakh to 36 lakh. The decline is attributed to diminishing job opportunities in core streams, with overall fresher hiring by IT companies dropping from 26% in FY22 to 15% and 10% in FY23 and FY24, respectively.
Despite this, there is optimism for certain niche courses such as cloud computing, artificial intelligence, and cybersecurity, which continue to see demand. Sharma emphasized that upskilling in these specific domains is recognized as essential by current employees, freshers, and experienced candidates to stay competitive in the IT sector. Tier-I IT firms are prioritizing digital transformation, data analytics, and cloud computing.
Sharma predicted a 4% dip in the total IT services headcount in the current financial year, potentially putting 2,00,000 jobs at risk depending on the campus placement scenario. The fresher hiring dip observed in FY22 is expected to continue, with a further 5% decrease in FY24, resulting in an overall hiring fall of 40%. Global Capacity Centers (GCCs) are anticipated to fall short by 50% of overall IT hiring in India.
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Amid the sector’s recent slowdown, Tier-I IT firms are cautious, focusing on internal mobility, lateral hiring, and some fresher hiring. The net staff addition in major IT firms hit a five-year low, with projections indicating a negative trend for the rest of the current financial year. Sharma highlighted that technology startups, in contrast, express a 59% intent to hire, according to their recent Career Outlook report.
Sharma urged caution in predicting a significant recovery in hiring due to weak global signals. While the IT sector has seen a slight upward trend since June 2023, factors such as the geopolitical and macroeconomic landscape and other external variables may influence the speed of recovery. Despite a mini-recovery phase attributed to cost reduction measures and improved global economic stability, a full-scale recovery akin to the pre-pandemic era remains uncertain.
Comparing the first week of October 2022 to the present, there has been a notable 20% decline in the number of students placed, hinting at a significant reduction in campus offers compared to the previous year.
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