Infosys job applications plummet to pre-COVID levels
BENGALURU, INDIA — IT services company Infosys experienced a notable decline in job applications and offers, returning to pre-COVID levels.
According to the company’s annual report, Infosys received 2.44 million applications for the financial year ending March 2024, a figure close to the 2.33 million applications received in March 2019.
However, the number of job offers extended has dropped dramatically, with only 26,975 jobs offered last year compared to 94,324 in 2019.
Factors driving decline in IT sector hiring
Industry experts attribute this decline to several factors. The low hiring requirements by IT services companies, a hangover from the bulk hiring during the pandemic, and the increasing allure of global capability centers (GCCs) have all played a role.
A person with knowledge of Infosys’s hiring plans also told Mint that the firm is “not hiring as much, so the applications were low. During COVID-19, hiring was in bulk, but right now, the sector is shaken up, and a lot of things have frozen.
Shifting job market preferences in tech industry
The decline in applications and job offers raises questions about whether Infosys remains an employer of choice in the IT sector.
Phil Fersht, CEO of outsourcing research firm HFS Research, added, “Traditional Indian IT services firms are not being viewed as exciting career tracks for many ambitious young graduates. Most fresher graduates are ambitious, and GCCs and startups are offering more challenging work, more money, and are simply more exciting places to work.”
The broader economic environment and evolving industry trends have also impacted hiring. Krishna Vij, vice president and business head of IT staffing at TeamLease Digital, highlighted the uncertain macroeconomic environment as a key factor.
“Overall economic uncertainty and a global slowdown have resulted in reduced hiring,” she said. Additionally, the tech industry’s shift towards more specialized and niche skills has further impacted the number of applications received.
AI-driven hiring processes at Infosys
Despite the decline in applications, Infosys has leveraged automation tools to streamline its hiring process.
“The sourcing and screening of 80% of the employees hired in FY24 was done through artificial intelligence (AI),” said a person familiar with the company’s operations. This use of AI has helped Infosys manage the large volume of applications more efficiently.
Future outlook for IT sector hiring
While the current hiring landscape appears challenging, some analysts believe that hiring may pick up in the coming financial year.
Ray Wang, founder and CEO of Constellation Research, suggested that the demand for IT talent could increase as companies realize that automation and AI are not yet ready to replace human workers entirely.
“There will be more demand in 2025, and this will be the beginning of the next boom cycle,” he predicted.