Amid the buzz of recession, layoffs and cost-cutting, the majority of employers in the service sector in India are keen to expand their workforce in the third quarter of FY23, as per a report by TeamLease Services.
According to the ‘Employment Outlook Report Q3 (October to December 2022),’ around 73 percent of employers are eager to increase their resource pool this quarter.
The report was curated after surveying 579 service companies in 14 cities across the country. The report further added that the pickup in the growth has stemmed from a rebound in new business gains as firms continued to benefit from lifting COVID-19 restrictions and ongoing marketing efforts.
What are the key sectors and services?
According to the TeamLease report, in the service segment, the key sectors that will show a higher hiring intent are information technology with 96 percent, educational services with 95 percent, e-commerce and allied startups with 92 percent, telecommunications 90 percent, retail at 79 percent, financial services at 78 percent and logistics hiring intent at 75 percent.
“The domestic IT & ITes industry to hire 2 lakh employees in the upcoming quarter. Hiring in no code solution/services will create 100 job openings, followed by the US-based IT firms in India having 700+ hiring positions this quarter for digital product engineering, cloud & DevOps, data, AI, Cyber security & design services. Customer engagement software platforms have raised $105million this quarter and will be expanding teams across geographies,” added the report.
When it comes to function, information technology will lead with a hiring intent of 94 percent followed by sales having a hiring intent of 87 percent. Digitisation and the demand for technology professionals are driving this trend exponentially.
The engineering sector closely followed sales with 76 percent hiring intent, clearly demonstrating the demand for specialised and expertise-driven jobs, specifically in the IT and telecommunications sectors.
Unicorns and startups to up their game
Unicorns/soonicorns seem to have been going through layoffs and cost-cutting due to the funding winter. But a high hiring intent of 89 percent is seen, with the end of that winter in sight, according to the report This category is benefiting from the increasing attrition in tech firms.
Startups are not too far behind and show a hiring intent of 77 percent, indicating that the worst is over and that the festive season is the beginning of a rosier future, added the report.
What about the companies?
The report stated that the demand for services has increased post-pandemic. In large firms, the demand has increased 79 percent, in medium-sized firms 45 percent and for small firms it was at 57 percent.
According to TeamLease Chief Business Officer Mayur Taddy, companies have shown a lot of optimism to increase their workforce. The festive quarter has brought positive tidings, especially for freshers and entry-level talent.
“Close to 74 percent of employers are enthusiastic to hire young talent and 69 percent to hire junior talent. For mid and senior-level talent, hiring intent stood at a moderate 48 percent and 34 percent, respectively," he said.
What locations do employers prefer?
The estimated hiring intent in metros and tier I cities was the highest at 95 percent, and in tier II cities it was at 75 percent.
The trickle-down effect of post-pandemic services job creation, however, has yet to gain significant traction in tier III and rural geographies.
The report said 97 percent of service-oriented jobs are in Bengaluru, 90 percent in Chennai, 86 percent in Delhi, 82 percent in Hyderabad, 79 percent in Mumbai, 69 percent in Pune, and 55 percent in Kolkata.
