Amid Layoffs, IT Companies Hired Record 24% More In May

by Vinaya HS on August 2, 2017

in Finance

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Information Technology industry has been the most aggressive recruiter in past. The market news has confirmed that the IT industry has been firing many of their employees lately in order to reduce their workforce in a measure of cost cutting. But in spite of that, the IT services industry has remained to be the most aggressive hirer in May of this year.

As per the study by the job platform TimesJob, in the month of May’17, where the overall talent demand increased by 4%, the IT or BPO industry has witnessed a magnanimous 24% rise in the demand for talent workforce as compared to the previous month of April’17.

TimesJobs study also revealed that the industry of BFSI or the combined industry of banking, financial services and insurance was the second most aggressive recruiter. BFSI has a 14% growth in talent demand. The third spot was grabbed by the consulting services. The consulting services sector recorded a 13% growth in talent demand. The fourth most aggressive recruiter was found to be the automobiles sector which had registered a 12% increase in the talent demand.

The business head of TimesJob, Mr. Ramathreya Krishnamurthy, has stated that the job cut in some of the departments of the IT and BPO industry has been due to the automation where the need of the man power is replaced by the machines or technology. But at the same time, since the new jobs that are hugely created due to the economic growth and technological revolution, the demand for manpower has risen too. This neutralizes the automation effect, in fact it ends up in creating more job.

As the business news says, as per the Nasscom figures, the IT industry has added 1.7 Lakh new jobs in the year 2016-17. Team Lease, a manpower solutions firm, said that the company has witnessed an aggressive hiring from the IT industry in both the services and the product companies in the departments of data science, 3D modelling, cloud and block chain. The IT industry has also laid off people who have been working for the redundant roles but they have also hired new work force with the latest technology needed. The company believes that the sector that includes IT, BPO, and product companies combined would have recorded a growth of about 15% in recruitments in May this year as compared to Apr’17.

Ciel HR Services, another recruitment firm, says that IT services hiring has reduced but if we talk about overall IT industry, the manpower has increased in a good demand. Also, if we talk about the location or city-wise, it is observed that the talent demand increased more in the tier-II cities as compared to tier 1 cities. For example, Jaipur had recorded a 20% hike in the talent demand.

For more on Business and Stock Market News, visit BloombergQuint.

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