No Big Hiring this year in IT industry says the giant IT Company TCS CEO. The mass recruiters and the leading IT Company TCS have kept the statement openly to the public. However they also have given clear cut reasons for their less numbers in recruiting this year.
The TCS CEO says, Hiring process this year seems to be greatly slowing down because IT companies have nearly 30% of employees in the bench (those who don’t have projects to carry on). He also tweeted that the global demand of IT is not expected to rise drastically this year. The number of initiatives by IT companies appears to be gradually slowing down.The hiring process gets slow down because the supply exceeds the demand.
N Chandrasekaran, CEO of TCS, said – About 60% of hiring in TCS goes by campus recruitment. As they were the mass recruiters this year they are not hiring in huge numbers for two reasons. The reasons are -firstly, for the past two years, the growth rate is not good. Secondly – The utilization levels has come down.The slow down in hiring by IT companies is expected to keep entry-level salaries stagnant over the next couple of years.
Lakshmi Narayanan, vice-chairman of Cognizant, says that salary levels of engineering graduates have become almost flat in the past 4 years. He also says that, there might be even a chance of hiring non-engineering graduates for the role of engineering graduates.
Currently, IT sector is offering salary around Rs 2.5-5 lakh per annum for entry level engineers. According to the recent survey, Around 10 lakh engineers are passing out every year but only 2 lakh are recruited by IT companies. And this year, the recruitment’s in IT will be considerably less.