In Gujarat, Tech Mahindra plans to hire 3,000 engineers over the next five years. On Tuesday, the IT behemoth also inked a Memorandum of Understanding (MoU) with the Gujarati government as part of its IT & ITeS programme to broaden operations throughout the state and create jobs.
Engineers and IT experts, who appear to be facing a difficult job market lately, are likely to embrace the news of the anticipated hiring. Recent months have seen a number of IT organisations either halt new hiring or drastically scale back their employment plans in response to an anticipated slowdown and potential economic slump.
A handful of businesses have also declared layoffs as they prepare for a tight money market where it will likely be more challenging to raise new cash.
According to CP Gurnani, CEO of Tech Mahindra, ‘This MoU (with the Gujarati government) would allow us not only capitalise on the opportunity created by the government to advance the development in the state, but it will also enable us to generate employment for local people.’
In terms of jobs, the IT sector is otherwise going through a difficult time. In a survey published just a few days ago, the staffing and research company Xpheno stated that the number of active jobs in India’s IT sector decreased to 210,000 in September from 260,000 in August.
In September, ‘IT services and software service industries showed declines by 13% and 42%, respectively,’ stated Xpheno’s research.
In addition, ‘Internet-enabled services and startups had a reduction of 35%, closing with 13,000 openings, as opposed to 20,000 in August 2022.’
Anil Ethanur, co-founder of Xpheno, was described in the paper as claiming that this was a corrective action for overhiring in the previous year. ‘The IT industry hired too many people during the upturn since last year. The patterns of hiring activity at the moment are blatant signs of a cooling in an earlier overheated labour market,’ he added.