IT industry appears to be going fairly slow in hiring compared to the last few years. The industry which was one of the biggest job creators is no more hiring techies. The data indicate that the hiring rate has come down by 50 percent in the peak rates in 2011.
Though the speed of hiring by technology companies has reduced, it does not mean that the demand for IT employees is affected. The condition of the IT companies in India is still the exact same, just the procedure of employment has shifted. Instead of directly hiring individuals on their payrolls, firms are currently relying on staffing firms to cater to their own talent needs.
The job method has moved to a staff augmentation model. If a business would like to hire a particular number of people, rather than hiring full-time workers, IT firms are currently sharing the requirement necessity with staffing businesses. This trend has created a high demand for staffing firms that keep a massive workforce on their citizenship to serve to these requests from IT companies.
When a project is limited to 6 to 12 months, an IT company typically hires a group for 20-30 people for a duration of their project. The team is sent to the customer site and functions under the supervision of the client company. Once the job is completed, IT firm need not keep the employees on their payroll. Previously IT companies needed to hire and retain these candidates, which used to put enormous cost pressures on them. It is the uncertainty of future projects and an uncertain global environment which has created demand for staffing businesses.
The thought of engaging temporary employees is now a win-win for the staffing companies and the IT business. Hiring and keeping an in-house team includes various hidden costs including infrastructure cost, an independent budget for worker benefits, etc.. The adoption of cloud has helped IT firms in reducing the cost of keeping large groups.
The new regions like social media, analytics, along with internet-related programs have changed the demand for traditional IT services. Staffing companies also invest in development and training, which helps IT firms in obtaining a ready pool of trained staff. This also suggests that job seekers from the IT sector can now easily find well-paying jobs in staffing companies.