Growth Slows Down
Indian software exporters are adopting a "wait and watch" approach on hiring as the ongoing tariff issues and economic uncertainty continue to weigh on the industry’s outlook.
IT Jobs in Crisis? Q4 Hiring Crashes by 20% Amid Tariff Tensions
India’s $280bn IT sector is freezing new hires amid global trade tensions. Here's what u need to know
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Talent Demand Drops
Recruitment firms reported that hiring mandates have reduced with talent demand dropping nearly 20% between January and March 2025 compared to the previous quarter.
Layoffs Expected in Tech
Kamal Karanth, co-founder of Xpheno, warns that layoffs may be coming in the Indian tech industry, especially in IT Services and Global Capability Centers (GCCs), which employ a large portion of the workforce.
Source: Linkedin.com
Attrition Hits Hard
Industry experts estimate that GCCs and IT services, which typically have an average attrition rate of between 12-16%, may just stop replacing these employees if the US tariffs impact them or their clients.
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Tariff Panic
Recent tariff announcements triggered new uncertainty for companies that rely heavily on North American and European businesses. Many firms are only filling essential jobs and reviewing their hiring plans every quarter.
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Cautions from IT Leaders
Wipro CEO Srini Pallia said the company is being careful with hiring to avoid deployment issues. TCS CEO K Krithivasan also noted rising uncertainty, causing delays in projects and decision-making.
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Lateral Hiring Dips
Indian IT firms have slowed or paused lateral hiring due to global uncertainties and tech shifts. In Q3 FY24, the top five companies cut a net 2,587 jobs, reflecting a major change in hiring trends.
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Adjusting Hiring Strategies
Companies are managing employee turnover and performance-based exits while being careful with lateral hiring. Top IT firms have raised their utilisation levels to 83-85% and are closely reviewing all hiring needs.
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