India’s IT and BPO sectors hit by slowing hiring
NEW DELHI, INDIA — Hiring across India’s major white-collar industries declined in September, with the information technology (IT) and business process outsourcing (BPO) sectors particularly impacted, according to the latest Naukri JobSpeak Index.
The report by job site Naukri.com showed an 8.6% annual decline in overall white-collar hiring in September 2023, with 2,835 job postings compared to 3,103 in September 2022. The IT sector has faced persistent headwinds due to global economic challenges, leading to a major decline in recruitment over the past few months.
The BPO/IT-enabled services (ITES) sector saw hiring drop 25% year-on-year, while fast-moving consumer goods (FMCG) fell 23%. Major IT hubs like Bangalore, Hyderabad, Chennai, and Pune saw hiring declines between 18-32%.
The IT industry’s struggle amidst global headwinds has been an ongoing concern, with hiring down 46% in July versus last year. The BPO sector saw a 21% hiring decline.
Reflecting on the decline, Naukri.com Chief Business Officer Pawan Goyal said, “While the IT sector continues to stay impacted, robust growth in the banking sector is a bright spot.”
However, some sectors showed resilience. The hospitality and travel industry saw a maximum of 22% growth as travel picked up during the monsoon season. Banking, financial services, and insurance (BFSI) and healthcare grew 7% each, with demand for roles like branch managers and financial consultants. The oil and gas and auto sectors also grew 6% each.
“Coupled with the fact that the overall index sequentially grew 6%, this underscores the resilience of the Indian job market, anchored in sectoral diversity,” he added.
Adding to India’s hiring challenges, the Foundit Insights Tracker survey revealed an 8% drop in India’s online recruitment in September. Based on the survey, the hiring index plummeted from 277 in September 2022 to 255 a year later as companies prioritize upskilling their existing employees over hiring new talent.
