Why has IT hiring slowed down?

December 15, 2023

The Information Technology (IT) industry is witnessing a notable change in its hiring practices. Traditionally reliant on campus hiring for entry-level positions, IT companies are now recalibrating their workforce strategies, showcasing a slowdown in entry-level recruitment and a significant uptick in hiring for niche roles such as AI, Cloud Computing, and Generation AI.

According to recent data from Quest, a leading workforce solutions provider, the hiring landscape is further shaped by a surge in apprentice hiring. Instead of relying solely on traditional full-time employees, IT companies are increasingly turning to apprenticeships as a strategic avenue for talent acquisition.

Bhavesh Goswami, CEO, and Founder of CloudThat, emphasizes the role of internships in preventing the frequent switching of jobs. According to Bhavesh, internships allow freshers to gain practical experience, understand the nuances of the industry, and make more informed career decisions. This not only benefits the candidates but also contributes to a more stable and informed workforce for employers.

Bhavesh suggests that the exposure gained during internships helps freshers align with their career goals, reducing the likelihood of them frequently switching jobs. This, in turn, benefits employers by fostering a sense of commitment and ensuring a better match between the individual’s aspirations and the company’s objectives.

The pandemic-induced disruptions have prompted IT companies to prioritize upskilling and reskilling their existing workforce, empowering them to take on higher positions within the organizations. This shift not only addresses the need for a more versatile and skilled workforce but also aligns with the dynamic demands of the ever-evolving tech landscape.

The quest for specialized skills in areas such as Artificial Intelligence (AI) and Cloud Computing has driven a surge in demand for professionals with expertise in these domains. As a result, companies are now actively seeking individuals with niche skill sets, creating a shift from broad-based hiring to a more targeted and strategic approach.

Moreover, the emphasis on apprenticeship programs indicates a broader industry trend towards cultivating talent from within. By providing hands-on training and real-world experience, these programs not only serve as a bridge between academic knowledge and practical application but also offer a tailored approach to building a skilled workforce.

The data from Quest suggests that 9% of IT/ITES employers foresee an increase in apprentice hiring, signifying a growing acknowledgment of the value apprenticeships bring to the industry. This trend aligns with the broader narrative of fostering continuous learning and adapting to the rapidly changing technology landscape.

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