Synopsis: IT services and global market conditions impact senior-level hiring with pay hikes expected. Roles in finance, consulting, and program management are in demand. Companies hiring for roles like chief AI officer, delivery head-AI, and CFOs. Skills in cloud computing, machine learning, and data engineering are sought after. Gartner forecasts $5 trillion IT spending in 2024, with India’s IT spending growing.
IT services has played a critical role in mass hiring of talented professionals for jobs across locations for about two decades. However, some of the hiring patterns have been changing due to global market conditions, AI-led innovations and productisation. What do these changes mean for employees this year?
The pressure on IT services companies to grow their top line and bottom line continues as the business environment hasn’t improved much, says Ashutosh Khanna, Co-founder and Director at WalkWater Talent Advisors. The hiring at senior level is expected to remain muted for next 2-3 quarters. He expects some overseas hiring to continue to happen for local talent, “as clients are looking for a good mix of Indian and local talent”.
Hiring in domains and skills
Shelton Guinn, Senior Vice President-Human Resources, Innova Solutions, says: “The Indian IT services sector is witnessing an interesting transformation, especially with respect to senior-level hiring this year. With pay hikes still expected in the traditional IT space — around 8-10% — leadership hiring across the board is also on an uptick. This optimism fueled by anticipated economic growth extends beyond just IT, with salary hikes for senior talent going up 20% on average, per Michael Page’s estimate.”
Roles in functions such as finance, delivery, consulting and program management will continue to be in demand, says Khanna. Domain-wise, the leaders are now expected to have capability in areas such as artificial intelligence (AI), cloud computing and machine learning (ML).
Companies are hiring for roles such as chief AI officer, partner or practice head, delivery head-AI, chief digital officers, CISOs, partnerships and M&A heads and CFOs. Companies are also looking at hiring sales leaders who can consult and advise clients on digital transformation.
Siva Prasad Nanduri, CEO of Diensten Tech Limited, says the type of skills the companies are looking for are in data science, data engineering, analytics, ML, AI and cybersecurity.
What is the outlook on attritions?
Khanna cautions that there will be movement of talent between companies for roles that are in demand. This will mean higher attrition. Layoffs will also continue as roles get redundant, he says.
But he also has a positive view: according to the latest forecast by Gartner, worldwide IT spending is anticipated to reach $5 trillion in 2024, reflecting an 8% increase from the previous year. This revised forecast, up from an earlier estimate of 6.8% growth, indicates a strong trajectory that could see global IT spending surpass $8 trillion well before the decade concludes. In India, IT spending is estimated to record double-digit growth of 13.2% in 2024, totaling $138.9 billion, up from $122.6 billion in 2023.
Nanduri, however, says candidates must be more competitive and creative in order to be hired for mid-career and senior positions. This can be achieved by upskilling in contemporary tech stacks, providing them with a variety of projects to work on, and allocating duties according to their roles. “To do this, you must learn how to leverage cutting-edge technologies like cloud computing, artificial intelligence and data analytics. These candidates must lead strategic initiatives and coach teams that advance organisational goals in order to adapt to changing work conditions,” he says.
Apart from fostering an attitude of continual learning, the Diensten Tech Limited CEO also sees a need to identify new talent, their potential and give them appropriate training. “It is crucial to make sure that when new hires are brought on at the mid-senior level, those who possess the necessary skills should be quickly identified. Maintaining a competitive edge means contributing significantly to their work and fostering growth within teams and organisations,” he adds.
Internal upskilling for roles
Nanduri clarifies that the dual strategy of reskilling and upskilling has been embraced by IT organisations as crucial components of their everyday operations. This suggests that current employees are actively working to expand their skill sets to keep up with the ever-evolving technology landscape and the demands of the market. Furthermore, these companies are aggressively seeking new hires with cutting-edge, “new age” skills in fields like data science, cybersecurity, cloud computing and artificial intelligence.
With the use of the most recent tools and methods, this strategy ensures that the workforce is flexible and prepared to take on new tasks. Ultimately, it aids in the company’s ability to stay creative and competitive in a rapidly changing digital landscape.
Guinn of Innova Solutions sees a strong emphasis on diversity and inclusion as part of the hiring process. Headhunters are reporting a rise in searches for seasoned leaders from a wider talent pool.
Source: The Economic Times