homeeducation NewsIT and startup recruitment see significant drop, hiring may pick up post Sept quarter: Teamlease
IT and startup recruitment see significant drop, hiring may pick up post Sept quarter: Teamlease
As the trend has been for the past few months, hiring in IT and startups has been seeing a significant drop compared to the last few years while non-IT hiring has been picking up gradually.
As companies gear up for the second quarter earnings season beginning July 12, staffing firm TeamLease Services believes the hiring trend for the April to June period as well as the current quarter will be muted, similar to the previous two quarters. It, however, expects hiring to pick from the end of the September quarter.
“The companies have already reached their full capacity and for any incremental projects, they have to start hiring. So, we are expecting the hiring numbers to pick up from the end of the second or early third quarter, but the first and second quarters will continue to remain the same as what we have seen in the last two quarters,” Ramani Dathi, CFO, TeamLease Services told CNBC-TV18 on July 11.
As the trend has been for the past few months, hiring in IT and startups has been seeing a significant drop compared to the last few years while non-IT hiring has been picking up gradually.
“The second segment is the startups, the new age emerging companies like edtech, fintech; it’s largely driven by the fact that they ran out of their funding and the hiring also has slowed down. Therefore, except for these two segments, we have seen positive hiring trends across all other industries,” Dathi said.
The top ones, according to TeamLease, are telecom, banking, financial services, and insurance (BFSI), fast moving consumer goods (FMCG), fast moving consumer durables (FMCD), manufacturing, engineering, pharma.
Another trend that has become prominent lately is the rise in hiring in tier 2 and tier 3 cities. Dathi explained that as far as IT is concerned, there is a slowness, mainly in metro cities as companies are coming under cost optimisation and margin expansion pressure, which is why they are hiring more mid and senior level people in tier 2 and 3 places.
The metro city hiring has come down in IT, whereas on the non-IT side, still a large number of hiring is happening in tier 1 and tier 2 places, she added.
Teamlease CFO also highlighted that the staffing firm expects hiring to pick up in rural areas. However, if one looks at banking, financial services and insurance (BFSI), fast moving consumer goods (FMCG), and fast moving consumer durables (FMCD) manufacturing, as of now numbers have not picked up.
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