Information technology companies will step up recruitments and small firms will face attrition with the IT-BPO industry expected to grow by about 15 per cent in the current fiscal year, according to the National Association of Software and Services Companies (Nasscom).

Hiring will be up by 6 per cent with net addition of employees in the IT sector expected to be 1.7-1.8 lakh, against a national rollout of 55 lakh graduates. Companies will also raise salary increments in FY15 by 9-11 per cent, slightly higher than what was in FY14.

These findings are part of a survey of 100 firms representing 45 per cent of the total Indian IT-Business Process Management industry revenue. Majors such as Tata Consultancy Services and Infosys took part, but Accenture, IBM, and HP India did not participate.

Releasing the survey, Nasscom President R Chandrashekhar said the IT industry is gearing towards creating business values, moving on from a service provider solely handling the technology part for its clients. As a result, human resource is evaluated qualitatively, making firms put skill over capacity.

Emerging trend Trends show companies are moving away from mass recruitment at campus interviews and going for lateral hiring, online hiring, and spotting candidates on social media. Of the 100 companies surveyed, 58 said they will hire more lateral entry graduates with certain skills, up from 54 in 2013. About 50 firms said they are “not happy” with campus recruits and are planning to expand their list of colleges. Start-ups are expected to lead the pack in hiring numbers, with headcount increase in small and medium firms likely to grow at 7-8 per cent. Chandrashekhar said it is a trend in top management institutes for graduates to become entrepreneurs. He said job exits to start a new company are more on the low-end of the employee hierarchy.

“There are fewer mid-level managers leaving to start their own company, but their visibility in the industry is high, so they are talked about,” he said

Women employees About 63 per cent of women in IT companies work in the entry level, calling into question gender diversity policies followed by companies.

“While firms are encouraging women to go up the ladder through flexible work-hours and such familial and social constraints weigh on them,” said BVR Mohan Reddy, Founder and Executive Chairman, Cyient Ltd.

Recruitment through non-traditional channels is also picking up, with job portals and social media playing key roles. About 44 companies said they use online social networks and job sites to pick candidates.

ob portals and social media playing key roles. About 44 companies said they use online social networks and job sites to pick candidates.

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