IT hiring is expected to gain momentum at the start of calendar year 2024, driven by the growing adoption of new technologies such as big data, cloud computing, and artificial intelligence, according to NLB Services’ year-end outlook.

Overall hiring in the IT sector is expected to surge by 12-15 per cent in CY 2024, especially due to a surge in GCCs and a stabilising global economy. The initial quarter will see 8-10 per cent growth in hiring, followed by 12-14 per cent in Q2 and Q4.

IT enterprises are scouting for experts to tap these opportunities, said the report. Owing to global recession and shift in business synergies, the IT sector witnessed a dip during the initial quarters this year. In fact, Q1 FY24 saw the sharpest contraction in IT headcount in three years as companies faced a slowdown in projects.

However, in Q2 FY24, key IT firms reported 3-10 per cent average increase in net profit through new wins, multi-year renewals with existing clients, and a growing investment in technology, among other factors.

Sought-after skills

Despite the initial slowdown, sskills in demand included software development (28 per cent), SAP (12 per cent), automotive design (14 per cent), and testing (12 per cent).

Across sectors there were layoffs by major corporations, with the technology sector the hardest hit, closely followed by e-commerce, finance, and education. Several factors contributed to the layoffs, including the global economic slowdown, ongoing geopolitical conflicts, increasing inflation, and a downturn in funding within the startup ecosystem.

New talent in demand

However, within the burgeoning sunrise sector in India, overall hiring remained optimistic in 2023.

Specifically, domains such as electric vehicles (EVs) saw strong demand for talent in areas such as engineering, manufacturing, and research and development. The EV sector is also creating new job roles in areas such as battery technology, charging infrastructure, and software development.

Overall, there was an estimated 40-45 per cent growth in jobs in 2023 as compared to 2022; in 2024, hiring is expected to surge by 15-20 per cent, the report said.