Software Giants Cancel Offer Letters, Is India Headed For A Recruiting Slump In IT Sector?

Right after the issue of IT employees moonlighting garnered attention in India, where many of them were caught doing two jobs at the same time due to the COVID pandemic remote work mode, there is news that IT firms were delaying the onboarding of new recruits by 3-4 months and even rejecting them leading to a fear of an IT recruitment slump in the coming days.

As per reports in Businessline, news had come to light after several freshers posted about the delay in the hiring process on social media platforms like LinkedIn, etc. They said that top IT firms like Wipro, Infosys , and Tech Mahindra have reportedly revoked offer letters after delaying their joining by nearly three-four months.

There were cases where freshers were given offer letters, then postponed their joining and in some cases, their offer letters were also revoked on the ground of not meeting their academic eligibility criteria.

There has been widespread fear of recession and rising inflation, and experts suggest that the hiring process in the Indian IT industry would slow down further in times to come. TCS earlier postponed variable pay to its employees while Infosys reportedly slashed it to 70 percent and Wipro deferred it completely. According to the latest report by Naukri.com, the IT sector recorded a de-growth of 10 percent in hiring activity in August. These adverse business conditions have led to many companies like Google, Facebook, and Microsoft putting hirings on hold. (With inputs from Businessline, India Today)

Also Read: Infosys To Start Operations From October 1 In Visakhapatnam