SHOCKING: Tech Giants SLASH Grad Hiring in 2024 - What This Means for YOUR Future

Major IT services companies, such as TCS, Infosys, and Wipro, are planning to reduce their recruitment of recent graduates in the fiscal year 2024 (FY24) due to a weakened deal pipeline and ongoing economic uncertainties in the United States. According to staffing agency TeamLease Digital, there is a projected 30 percent year-on-year decline in fresh graduate hiring for this period. This is a notable shift from the robust recruitment trends that characterized the tech industry from 2021 until September-October 2022.

In addition, a significant number of recent engineering graduates from the classes of 2022 and 2023 who received job offers from IT services firms are experiencing persistent delays in their onboarding processes. Some have not received any communication regarding their joining dates, despite being promised jobs over a year ago. Others have faced repeated delays in their joining dates, and a few have been asked to undergo additional training, even as their offer letters approach their expiration dates. Regrettably, there have been instances where job offers were revoked, leaving these young professionals uncertain about their prospects in the tech job market, as reported by Business Today.

Harpreet Singh Saluja, President of Nascent Information Technology Employees Senate (NITES), has received complaints from around 20,000-25,000 students belonging to these recent batches, all expressing concerns about onboarding delays. Saluja questions the wisdom of issuing such a large number of offer letters to fresh graduates when the business climate was unfavorable for hiring.

Prominent figures in the industry, like T.V. Mohandas Pai, Chairman of Aarin Capital and former CFO of Infosys, argue that companies should prioritize onboarding fresh graduates and providing immediate training, even if it results in financial losses for a few quarters. Vineet Nayar, Founder Chairman of Sampark Foundation and former CEO of HCL Technologies, stresses that growth will eventually return, and it is prudent to build trust and respect by onboarding new talent now.

Prabir Jha, Founder and CEO of Prabir Jha People Advisory, underscores the importance of honoring onboarding timelines or retracting offers to maintain transparency and integrity in the hiring process. Experts emphasize the need for the IT industry to attract top talent from Tier II colleges by streamlining excessive workforce size and offering more competitive salaries to recent graduates.

Pai suggests reducing mid-level positions and increasing compensation for fresh graduates while parting ways with highly paid but unproductive senior employees. Jha emphasizes the significance of authentic role-based promotions to control costs. Nayar recommends revisiting campus recruitment with five-year salary projections, emphasizing that investing in employees during both downturns and upswings is critical for long-term success in the people-centric IT services sector. As the industry grapples with these challenges, it remains vital for companies to adapt and secure their future by prioritizing fresh talent and responsible hiring practices.