Microtrends in the IT Hiring Boom
The Bigger Picture: The Macrotrends
According to the research by the Hindu Business line, the IT sector has been a reliable contributor to the country’s GDP as they have contributed nearly twice compared to before. The domestic revenue of the IT industry is estimated to be $45 billion while export revenue is estimated to be at $150 billion in FY21. In the last few years, a NASSCOM source states that the pace of digital transformation increased rapidly. Amidst the pandemic, the IT sector has gained more prominence than ever. According to Gartner estimates, IT spending in India is estimated to reach $93 billion in 2021 (7.3% YoY growth) and further increase to $98.5 billion in 2022.
More and more industries are now upgrading their cloud infrastructure and allocating more resources to develop contactless intelligence and advanced data management systems. The countless digitisation projects that are underway in manufacturing, pharmaceutical, education, and other sectors have pushed the demand forward for advanced IT skills. Undoubtedly, the COVID-19 pandemic has further solidified IT’s position as an indispensable part of businesses. The ramifications of the pandemic will echo on businesses and practices for years to come. Yet, the ‘pandemic as a catalyst’ is only one part of the equation in the bigger picture. Pandemic or not, the world was already advancing to a new information age. Automation is set to have a great impact on the global workforce and could spur more job creation in IT, IT-es, and allied sectors. Countries like China and India could be facing premature deindustrialization due to various factors like global warming and global recession. This could relocate more resources to the IT-led service sector. We can say with certainty that the IT sector will continue to play a big role in the job market in the short and long term.
According to consulting firm Mckinsey, the tech industry stood out among the rest with the IT industry accounting for 8% of India’s GDP. In stark contrast to the rest of the Indian economy, the IT sector overcame the challenges and thrived. The trend continues in 2021. An aggressive hiring strategy can be observed for many IT roles. Tech roles consistently score the highest when it comes to postings, salary, and growth opportunities. Tech skills like Fullstack Engineering, Data Analytics, Front End Engineering, Backend engineering, SRE/DevOps, and Data Science are among the most in-demand.
A Closer Look: The Microtrends
Now that we have a clear picture of where IT stands with respect to the current state of affairs and the future roadmap, here are more micro trends that also deserve your attention.
The funding boom driven by foreign capital has made hiring more expensive than ever for tech companies. This inflation in salary is especially concerning for early-stage startups.
Cash over ESOPs
Junior-level engineers and mid-level hires show a preference towards more take-home pay and express reluctance when it comes to Employee Stock Ownership Plans (ESOPs).
A rise in post-offer dropout rates
Armed with multiple job offers, talents find themselves in a position of power. More candidates are rejecting an offer from one company to take up another.
Use of virtual hiring tools
Organisations are increasingly adopting VR and AI-based simulation tools to test skills video conferencing to conduct interviews.
From BMW superbikes and Dubai vacations to iPhones and Amazon vouchers, a variety of perks are being announced to recruit top talent in the tech sphere.
Remote work as an option
Decentralisation of talent has become a new reality for many IT companies. Several companies offer candidates an option to work from home.
Gig workers are not left behind
In the recent wave of IT hiring frenzy, there is also a high demand for freelancers and on-call/contract workers.
Traditional industries are also joining in
Traditional and established companies across all sectors are undergoing large-scale digitalisation and are adding tech professionals to their payroll.
The IT sector is thus witnessing a major shift in trends after being propelled by the changes brought about by the pandemic. The IT hiring space continues to grow with power being in the hands of the talent suites and industries morphing and adapting to best suit these new trends.