Tech Majors Continue With Sluggish Hiring, Non-tech Cos Expanding Workforce: TeamLease Digital CEO

How would you describe the hiring pattern for tech roles and what is your outlook for hiring in FY25?

We have noticed a slow hiring in Q3 and it appears that Q4 will also follow a similar trend. But in recent months, there has been a shift in hiring patterns where non-tech companies are now recruiting more employees than prominent tech companies. There is also a noticeable increase in hiring within the GCCs. By studying this shift, we are preparing ourselves to meet the talent requirements of organisations to fulfil the new demand. Further, we are placing a strong emphasis on upskilling the existing talent pool, ensuring that qualified candidates are equipped with the necessary skills for the evolving roles that companies are seeking.

Do you think the muted hiring pattern will change?

The market trends indicate that companies are unlikely to proceed with significant layoffs, which will certainly slow down the negative pattern. However, there is a greater chance that organisations may prioritise filling positions that would have otherwise remained vacant in the upcoming quarters. While major layoffs and the drama of pink slips may not disappear entirely, retention of headcounts is expected to enhance the situation.

What is the reason for the slow hiring?

Post-pandemic, there had been a notable increase in recruitment figures, but in recent times, we have noticed some streamlining. I attribute the sluggish hiring process mainly to the state of the global market, ongoing elections and conflicts worldwide. With nearly 20 countries preparing for elections, this could also be a contributing factor to the halted recruitment activities.

How is artificial intelligence (AI) influencing the recruitment process?

It is premature to conclude that AI is taking over current jobs, but inevitably AI will replace many entry-level and redundant jobs eventually. However, it is crucial to acknowledge that AI will also create new job opportunities and the need for skilled talent. This consideration should be taken into account at both national and organisational levels. We must ensure that we have an adequate number of skilled individuals who can fill the emerging roles resulting from the impact of AI on the workforce. While it is too early to determine the exact number of working positions that AI will generate, new roles will certainly emerge, accompanied by a demand for advanced skill sets. We must be prepared for this shift in skill requirements to avoid missing out on opportunities, particularly considering the vast talent pool within the IT industry.

How is TeamLease assisting candidates in enhancing their skills for tech roles?

We are offering three to four top tech stacks for the learning and upskilling of candidates looking to enhance their skills. It is important to note that our focus on upskilling is primarily driven by TeamLease Edtech, our dedicated arm for upskilling and reskilling the existing workforce, especially in the IT sector. Moreover, our programmes are available at subsidised rates for all our current associates, alumni and potential candidates. We specialise in training individuals with minimal skills and plan to introduce a range of programmes on an ongoing basis, including self-learning and instructor-led sessions, both online and in-person.

Our objective is to provide continuous learning opportunities with ample support to ensure that candidates remain relevant, upskilled and well-prepared for job roles within the tech sector. 

What is the average CTC of recruited candidate via TeamLease in FY24? How does it compare to FY23?

In the financial year 2023, candidates were offered an average CTC (Cost to Company) of around Rs 5.2 lakh per annum. However, in the current financial year, this figure has increased to Rs 5.8 lakh per annum, which is relatively higher compared to the last fiscal.

What skill sets are currently in high demand in the technology industry and where should candidates direct their efforts?

When considering skill sets, companies are looking for proficiency in digital skills, AI expertise and comprehension of sensitive AI, along with fundamental skills such as Java full-stack development, Python and ITI. Regarding infrastructure skill sets, individuals with knowledge in Java FSD, Cyber Security & Cloud Computing, DevOps, AI/ML and SAP are in high demand, comprising the majority of talent in the industry.

Can you tell us about your partnership with the Central Government?

We have established a strong partnership with the government as knowledge partners via TeamLease Edtech. The TeamLease arm has collaborated with National Skill Development Corporation (NSDC) to expand our reach to a larger number of beneficiaries and learners. This partnership extends beyond vocational skills and short-term programmes, encompassing long-term degree and connectivity courses. Our collaboration extends to approximately 50 public and private universities that offer online degrees. Some of the universities we partner with include Jain University, Aligarh Muslim University, Andhra University, Netaji Subhash Open University and Chandigarh University. Additionally, we have formed key partnerships with prestigious institutions such as IIT Patna, IIT Jammu and IIM Kashipur.