An increase in contract hires often indicates an improvement in demand for IT service providers. Experts point out that this usually works with hiring for permanent jobs.
“With layoffs reducing this (seat) pipeline, the current hiring rate is up about 40-50% compared to the same period last year,” said Neeti Sharma, CEO of TeamLease Digital , cited by ET. “While there has been single-digit (revenue) growth for some IT services specialties, this increase highlights the urgent need to repopulate and augment the workforce following these reductions, by the through employment contracts to achieve flexibility,” Sharma added.
Recruitment companies and other employment service providers are also taking note of the increase in employment contracts. Companies adjust their contract recruiting strategies based on factors such as expected future demand, backlog situation and specific customer needs. As global uncertainty begins to stabilize, experts expect IT spending to increase.
Michael Page reported total engagement growth of 22% year-over-year in the January-March period, including within IT services companies. “Sectors such as consumer durable goods, IT, e-commerce, GCC and retail have a high demand for contract staff,” said Pranshu Upadhyay, regional director, Michael Page India. The most popular tech hiring skills include Google Cloud, Data Analytics, AI/ML, Application Development, ERP, Networking, GenAI, and Cybersecurity.
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