The pandemic has had a significant impact on Information Technology (IT) job openings and hiring trends of the industry in India. According to the Indian IT Industry Association, in 2019, there were approximately 1.5 million IT job openings in India. However, by 2020 & 2021, this number decreased to 1.2 million & 1.1 million respectively. The number of IT job openings is expected to continue to decline in 2022 reaching 1 million.
The pandemic has also led to an increase in demand for IT roles that support remote work, such as Virtual Desktop Infrastructure (VDI) specialists and Remote Desktop Services (RDS) specialists. According to a recent survey of IT Hiring Managers, the pandemic has changed the way they view IT job candidates. The biggest change is that they are now looking for candidates with experience in remote work and collaborative tools. They are also looking for candidates with experience in Cloud Computing and Data Security.
Read more about Hiring Trends 2022: Before vs After Pandemic
Hiring Trends in IT 2022: Before vs After Pandemic
The global pandemic has had a profound impact on the IT sector in India. According to the World Bank, in 2019, the sector grew by 7.5% to reach a value of $178.6 billion. However, this growth was significantly lower than the 10.3% growth recorded in 2018. 2020 was a difficult year for the IT sector because of the outbreak of COVID-19.
The sector was impacted in several ways, including a drop in demand for IT services, and a slowdown in the global economy and its hiring trends of the industry. As a result, the sector is estimated to have declined by 3.7% in 2020. The rebound in growth is due to the gradual recovery of the global economy and an increase in demand for IT services.
The outbreak of COVID-19 has had a significant impact on the IT sector in India. The IT sector is a major employer in India, with around 4 million people employed in the industry. The IT sector has been one of the fastest-growing in India, with an annual growth rate of around 9% in recent years. However, the pandemic has caused a sharp slowdown within the industry, with growth to fall to just 2-3% in 2020-21. The pandemic has also impacted the hiring trends in IT. Here are a few hiring trends in IT sector in 2022:
- Job Losses
The pandemic has led to job losses in the IT sector, with companies cutting costs and shedding jobs. Around 1.8 million jobs are expected to be lost within the sector in 2020-21, according to the National Association of Software and Services Companies (NASSCOM). This includes direct and indirect jobs, as well as those in the ecosystem.
- Pay Cuts
The pandemic has also led to pay cuts in the IT sector. Many companies have implemented pay cuts of up to 10-20% to reduce costs.
- Decrease in Demand
The IT sector has also been hit by a slowdown in demand, because businesses around the world have cut back on spending. This has led to a drop in revenues for many IT companies.
3 Long-Term Impacts of the Pandemic on IT
The long-term impacts of the pandemic on the IT sector in India are likely to be both significant and far-reaching. The pandemic is likely to have a number of impacts on the sector and its hiring trends, both in the short and long term.
In the short term, the pandemic is likely to have a significant impact on demand for IT services because businesses around the world cutting back on spending. Many IT service providers are likely to see a significant drop in demand for their services. This is likely to lead to a reduction in revenue and profit for many IT service providers. In the long term, the pandemic is likely to have a number of impacts on the IT sector in India, some of which are:
1. Slow Growth
The IT sector has been growing at a rapid pace in recent years, but the pandemic is expected to slow down this growth. This is likely to have a number of impacts on the sector, including a reduction in the number of new jobs created and a slowdown in the growth of wages.
2. Change in Ways of Operation
The second long-term impact is that the pandemic is likely to lead to a change in the way that the IT sector operates. The pandemic has led to a widespread shift to remote working, and this is likely to continue in the long term. Because of this, there will be a number of affects on the IT sector, including a reduction in the need for office space and an increase in the need for cloud-based services.
3. Change in Ways of Regulation
The pandemic has led to a number of countries introducing new regulations governing the IT sector, and this is likely to continue in the long term. This is likely to have a number of impacts on the sector, including an increase in the cost of compliance and a reduction in the free flow of information.
Role of IT in Helping India Recover from the Pandemic
The novel coronavirus pandemic has had a devastating impact on economies around the world. India is no exception. The pandemic has severely hit India’s already struggling economy and the hiring trends, with Gross Domestic Product (GDP) growth projected to decline sharply in 2020-21.
The Indian government has responded to the crisis with a comprehensive economic package totalling Rs 20 lakh crore ($266 billion), equivalent to 10 percent of India’s GDP. The role of information technology (IT) will be crucial in helping India recover from the pandemic because it can help in a number of ways, including:
1. Supporting Government Programs
The government’s direct cash transfer and food security programs are a lifeline for millions of families across India. For example, the government’s direct cash transfer program is being implemented through the Direct Benefit Transfer (DBT) platform.
IT can also help in the implementation of the government’s food security program. The Public Distribution System (PDS) is the main mechanism through which the government provides food subsidies to the poor.
2. Enabling Remote Work and Learning
The pandemic has forced organizations to allow employees to work from home. IT can also help in enabling remote learning. With schools and colleges closed, students are increasingly relying on online learning platforms to continue their studies because IT can help in making these platforms more user-friendly and effective.
3. Strengthening Healthcare Delivery
The pandemic has placed a tremendous strain on India’s healthcare system because IT can help in strengthening healthcare delivery in a number of ways. For example, IT can be used to develop early warning systems that can track the spread of diseases and help in its containment.
4. Boosting Agricultural Productivity
The pandemic has also impacted India’s agricultural sector. Because of the lock-down, farmers have been unable to transport their produce to markets, because of which there is a decline in agricultural productivity.
IT can help in boosting Agricultural productivity by providing farmers with better access to information and market prices. IT can also help in the development of better logistics systems for the transport of agricultural produce.
5. Helping Small Businesses Survive and Thrive
Small businesses are the backbone of the Indian economy. The pandemic has severely impacted small businesses, with many of them struggling to survive. IT can also be used to develop better accounting and inventory management systems. Ultimately, IT will play a vital role in helping India recover from the pandemic.
Benefits of the Pandemic on IT Sector in India
The IT sector in India has definitely benefited from the pandemic in a number of ways. One of the most obvious benefits is the increased demand for IT services and products. The demand for IT infrastructure and services has increased exponentially. This is because businesses and governments around the world rely on remote work and online communication. This has led to a boom in the IT sector in India because many companies are reporting record profits and growth.
Another benefit of the pandemic for the IT sector in India is the increased focus on digital transformation. With the pandemic forcing businesses to re-evaluate their operations and strategies, many have turned to digital solutions to remain competitive. This has led to a surge in demand for digital transformation services, because this is a key area of expertise for many Indian IT companies.
Finally, the pandemic has also created opportunities for Indian IT companies to expand their reach into new markets. With businesses around the world looking for ways to cut costs and improve efficiency, many are turning to Indian IT companies for solutions. This has led to increased business for Indian IT companies in markets such as the United States, Europe, and Asia.
Some statistics that prove the benefits of the pandemic on the IT sector in India include:
(This data is from a report by Deloitte titled “The Impact of COVID-19 on the Indian IT Sector”.)
1. The number of internet users in India is expected to grow from 460 million (2020) to 627 million by 2025, indicating an increase of 37%.
2. The value of the Indian IT market is expected to grow from $160 billion (2020) to $228 billion by 2025, an increase of 42%.
3. The number of jobs in the IT sector is expected to grow from 3.9 million (2020) to 5.2 million by 2025, an increase of 33%.
The most significant change in hiring trends is the move away from traditional IT roles, like Developers and System Administrators. Companies are now looking for candidates with skills in areas such as cloud computing, data analytics, and cybersecurity. This is a direct result of the increased reliance on technology during the pandemic. The pandemic has had a major impact on the IT industry, and this is likely to continue in the future. Remote work is also becoming more popular, as it offers a number of advantages for both employers and employees.
1. What are the most in-demand IT skills for 2022?
The most in-demand IT skills for 2022 are:
- Cloud computing
- Artificial Intelligence (AI)
- Big data
- Internet of Things
2. What is the job outlook for IT jobs?
According to the US Bureau of Labor Statistics, the job outlook for IT jobs is positive. The demand for IT professionals is expected to grow by 12% through 2018 to 2028. This growth is driven by the continued expansion of the internet and the need for businesses to adopt new technologies.
3. What are the government policies affecting the IT sector in India?
There are a number of government policies that affect the IT sector in India, for example, the Information Technology Act, the National Policy on Information Technology, the Digital India Program, and the Make in India Initiative.