Information technology sector in the country witnessed steep decline in hiring activities as most companies embraced cost cutting measures to tide over uncertain economic conditions, say experts.
"Hiring activities have seen a dip of 29 per cent in IT and ITeS sectors in May 2012 from the preceding month," MyHiringClub.com CEO Rajesh Kumar said.
However, he said that other industries have increased recruitment activities by 13-15 per cent in May as compared to April.
HR experts attributed the sluggish job scenario in the
IT and ITeS space to cost cutting move and expects that the same trend would continue for few months.
"Cost cutting and project
outsourcing is one of the reason for decline in
hiring activity in this sector," Sat-n-Merc Manpower Consultant Director Prachi Kumar said.
She further said, "Uncertainty in economic scenario and political conditions have also affected hiring activities. We are expecting the same trend will continue for few more months."
Echoing the view, Rajesh Kumar said, "A weaker rupee would help the Indian software exporters with higher repatriated earnings, as the largest proportion of their revenues comes from the US. But still IT companies had slow down their hiring activities in the month of May 2012. Major reason behind this is companies are going to reduce the bench size and award more jobs on contact basis to save costs for future inflation."
In terms of geographical analysis, Bangalore has seen a slump of 31 per cent in hiring from previous month and a decline of 18 per cent from the year-ago period.
Besides, Delhi has witnessed a drop of 16 per cent last month compared to April followed by Chennai (17 per cent), Mumbai (14 per cent) and Hyderabad (12 per cent).
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