IT sector active job openings in August drops 23% YoY: Xpheno

The Information Technology (IT) services and software services sectors reported 23 percent drop in active job openings volume in August 2022, as compared to the same month in August 2021, according to a report by staffing firm Xpheno. This comes at a time when Indian IT companies are already facing challenges and delays in rolling out quarterly variable pay to the employees amidst margin pressures.

On a month-on-month basis as compared to July 2022, IT Services and Software Service sectors registered 5 percent and 7 percent drop in job opening volumes respectively, according to the report. The IT Sector Collective of Services, Products and Internet enabled sectors, listed 165K jobs in August 2022, as against 172K in July 2022. On a MoM basis, the IT Sector collective registered a 4 percent drop in volume over June 2022.

In fact, the IT sector which is known to contribute the highest number of openings, saw an overall drop to 63 percent against the 80 percent plus range it has maintained over the last year, according to the report. This 63 percent is also the lowest contribution that the tech sector has recorded over the last 30 months.

This has primarily been on the account of margin pressures due to an impending recession in key markets like the US, inflation and a need to improve utilisation rate after a year of record hiring in 2021.