Following the exuberant period of 2021 until September-October 2022, during which major IT firms like TCS, Infosys, Wipro, HCL, Tech Mahindra, Cognizant, Accenture, and many others hired a large number of fresh graduates in anticipation of growth, these companies are now considering reducing their intake of freshers. This decision is driven by a weakened deal pipeline and lingering concerns about a recession in the United States. Staffing agency TeamLease Digital has forecasted a 30% year-on-year decline in hiring for FY24.
In addition to this, thousands of fresh graduates from the 2022 and 2023 batches of engineering colleges who secured jobs with IT service firms, either through on-campus or off-campus placements, are experiencing persistent delays in their onboarding processes. While some have not received any communication regarding their joining dates despite being promised employment over a year ago, others find little solace in companies repeatedly extending their joining dates every two to three months. Some are compelled to undergo additional training even as their offer letters approach expiration, and a few have had their offers revoked. These graduates are essentially left adrift in an uncertain tech job market.
Harpreet Singh Saluja, President of Nascent Information Technology Employees Senate (NITES), estimates that the employees' union has received complaints about onboarding delays from 20,000 to 25,000 students in the past two batches. He questions the rationale behind issuing so many offer letters to freshers if the business outlook was uncertain.
T.V. Mohandas Pai, Chairman of Aarin Capital and former Infosys CFO, voices concern about the impact of these delays on young professionals and suggests that firms should onboard and train freshers promptly, even if it means incurring financial costs for a few quarters. Industry veterans agree that while business exigencies are valid, companies should consider retaining surplus employees for a short period.
Vineet Nayar, Founder Chairman of Sampark Foundation and former CEO of HCL Technologies, emphasizes the importance of winning the trust and respect of freshers and believes that growth will return in due course. Prabir Jha, a veteran CHRO and Founder and CEO of HR firm Prabir Jha People Advisory, suggests that companies should have either adhered to onboarding timelines or withdrawn offers, even though it would have been a difficult decision.
Industry experts stress the need for the IT sector to attract top talent from Tier II colleges and recommend streamlining operations by reducing mid-level positions and increasing compensation for freshers. They also suggest reevaluating senior-level salaries to enhance productivity and cost-effectiveness. Furthermore, they advocate for promotions to be based on roles and responsibilities rather than artificial title changes, ultimately benefiting organizations in both challenging and prosperous times.
.jpg)
