IT companies see more CVs than they did 3-4 months ago, says Info Edge

Representative image

Info Edge, the parent company of hiring platforms like Naukri and IIM Jobs, sees an uptick in IT job postings on its platform with a significant rise in the number of resumes being viewed by information technology (IT) companies compared to three to four months ago.

However, Info Edge remains cautious about whether this surge indicates a bottoming out of utilisation levels for IT firms, the company said at its post-earnings analyst call on May 16.

This resurgence bodes well for the $250-billion sector which recently ended with a multi-decadal record of a fall in headcount. The IT industry is going through a rough patch as macroeconomic issues have dried up discretionary spending by clients.

Also read: TCS, Infosys, Wipro together lost 63,759 employees in FY24

“On our website, more CVs are being viewed by IT companies than was the case maybe three or four months ago,” Info Edge chief executive officer Hitesh Oberoi told analysts. “Let's hope it sustains.”

The comments were made after the Sanjeev Bikhchandani-owned company registered a 5 percent rise in recruitment revenue to Rs 481 crore in the March quarter.

While acknowledging the importance of Indian companies and startups in IT talent acquisition, Oberoi highlighted that in the larger context, their hiring constitutes a relatively smaller portion.

"But the IT companies continue to be a big part of the puzzle and maybe we have bottomed out, maybe we haven't, I can't say for sure," Oberoi further said.

He pointed out a probable reason for the rising job postings: that the utilisation levels of IT services firms are growing back to the pre-Covid levels amid a hiring slowdown in the sector. He explained that many IT companies had over-hired during Covid as digitalisation and demand for IT services shot through the roof.

The higher demand resulted in higher attrition and salaries as job openings increased. However, when demand suddenly disappeared because of uncertain macroeconomic issues, IT companies realised they had over-hired. “Utilisation rates fell and I think we are at a stage where some of the companies' utilisation levels are going back to pre-Covid levels,” Oberoi said.

Also read: Psychometric tests, higher score, hand-written codes: Tech companies make freshers sweat for an offer

Oberoi further added that IT companies have moved beyond candidates possessing vanilla skills in coding languages like Java and Python. They are now looking at newer-age skills such as artificial intelligence, machine learning, data analytics, data engineering, modeling, and analytics.

Info Edge saw billings growth of 11 percent in the IT segment and 12 percent in the non-IT segment, whereas the consulting segment was flat in the March quarter, according to the management.

Info Edge’s consolidated revenue rose 9 percent to Rs 657 crore during the period. It registered a net profit of Rs 162 crore in Q4, compared to a loss of Rs 447 crore in the year-ago period.

The company grew its operating profit margins to 37.0 percent of revenue and registered a growth of 8.9 percent in its operating profit, which stood at Rs 224.8 crore on a standalone basis in Q4FY24 as compared to Rs 206.3 crore in Q4FY23.