Tech sector continues to be the largest recruiter even amid the pandemic

Even as uncertainty continued at the back of the ranging pandemic, technology was one of the few sectors that witnessed hiring. Going by a recent report, technology-related jobs accounted for about 74 percent of overall openings as of December 2020.

Total job openings in December was 1.8 lakh, the report said.

They are followed by banking and financial services at 21 percent each. IT services firms accounted for about 22 percent of the total job openings.

Tech sectors that are hiring include IT services, internet-enabled services and software products and services firms. Some of the prominent employers were Accenture India, Amazon, DXC Tech, IBM, Microsoft, JPMorgan Chase, Citi, GE, and Vodafone.

The report by Xpheno, a specialised staffing firm, revealed that active jobs in December was down 33 percent from 2.70 lakh in November 2020. This is the first time in the quarter the active job count has dropped below the 2 lakh mark, the report pointed out.

In October, active job openings were 2.75 lakh.

This is a stark contrast from the scene jobs market witnessed in June when the hiring dropped. Number of active job openings in June and July stood at 1.32 lakh and 1.42 lakh, respectively, one of the lowest.

When the pandemic hit, first instinct for IT firms, one of the largest recruiters, was to preserve cash since there was not much clarity on how long the situation would continue. This resulted in firms freezing new hiring and some of them cutting employee salaries. Salary hikes and promotions were put on hold as well.

That reflected in reduction in jobs in the market, including the tech firms. For instance, total headcount in top four Indian IT firms reduced by 9000 in the quarter ended June 2020.

However, as demand improved over the next few months, hiring improved too. Total headcount increase in top four IT firms was 17,000 for the quarter ended September 2020. Firms also opened up lateral hiring with recovery in sight.

With analysts and executives forecasting better growth in 2021, the hiring momentum is likely to continue. According to a report by the staffing firm Teamlease Digital, the demand for IT talent is likely to seen an increase of 10-20 percent.

But even as hiring is increasing, the way enterprises hire people is seeing a change. Obvious one being online interviews. "Recruitment will become data-driven with the help of AI and the digital experience will be enhanced with respect to virtual screening, interviews and even on boarding the candidates," said Siva Prasad Nanduri - VP & Business Head- IT Staffing, TeamLease Digital, in a statement.

Nanduri further added that remote working will continue and the criteria of location for a job will become less important. This is reflected in reducing jobs in metro locations.

Other change is increase in full-time remote job opportunities. There were 5,000 such opportunities in December 2020, a significant increase from 1,200 remote job openings in May 2020.

“With more enterprises announcing extended WFH and Remote Working, going into 2021, the growth in Full-time Remote Job Opportunities should be expected in the coming year,” the report added.