Job growth in IT sector may come back in 2nd half of FY25

“The reduction in employee headcount at major IT companies in India can be attributed to several factors. Firstly, there’s an uncertain demand situation across global markets, particularly in the US and Europe, where cautious spending by clients has led to a decrease in demand for IT services. This decline is evident in the collective headcount drop of over 17,500 employees across the top 8 IT firms in the December quarter alone,” Joshi said.

Additionally, geopolitical tensions, such as the conflicts between Israel-Hamas and Russia-Ukraine, have contributed to the downturn, he added.

Nirupama VG, Founder, ADAstra consultants, said the rapid adoption of automation and AI technologies has led to concerns about job displacement, with 30% of workers fearing technology may replace their roles. The rise of remote work, with 28% of office workers globally working remotely, has influenced employment patterns.

“The outlook appears promising despite initial setbacks. The presence of over 1600 GCCs in India, employing more than 1.5 million people, reflects the robust demand for IT professionals. The cybersecurity sector, in particular, shows potential, with a projected need for an 89% increase in the global cybersecurity workforce by 2023,” Nirupama said.