More than 7 lakh engineering students graduate every year. In fiscal 2013- 14, Crisil estimates IT hiring at 1.05 lakh and says the number could come down to a mere 55,000 by 2017-18. The IT sector currently employs 31 lakh people or 24 per cent of total private sector jobs in the organized sector. The sharp slowdown will therefore impact the overall hiring sentiment in the economy.
IT jobs growth is slowing down because margins in the $ 118 billion outsourcing industry are under pressure. Frontline IT companies such as TCS, Infosys and Wipro earn nearly three fourth revenues from North America and Europe, where growth is still anemic. As a result, clients are asking companies to cut costs.
Source: The Hans India