Is the U.S. Recession a 'HIT' in the Indian Tech Industry ?

By Mr. Supratim Mukherjee

The recession in the U.S.A. has hit many industries in its own way across the globe. The International Monetary Fund and World Bank are predicting that many third-world countries like India will grow at a steady pace. Forecasts show average data, but sector-specific growth rates have not yet been taken into account. Sectors such as technology, manufacturing, and retail change on many levels.

In an article shared by The Economic Times, some forecasts are based on projections of domestic demand in the economy. The past year has been a rollercoaster for the IT industry. Stocks fell as a result of the recession impacting the United States and, ultimately, the world.

India's IT sector was dominated by companies in the United States and other countries. These companies have started layoffs with the high recession rate sweeping the world. Major companies such as Amazon, Apple, and Microsoft have laid off thousands of employees. With numbers continuing to grow, many Indian conglomerates, such as Tata and HCL, have maintained steady economic growth despite difficulties. Attributing it to a mere nation is not the only factor. Economic data can only be considered as forecasts. Events like pandemics are always a factor of surprise when it comes to economic change. The economy may continue to develop steadily, but employment numbers will still decline, with some consequences.

Here are the most important industry predictions for 2023: IT

First, 20% to 30% of hiring attempts fail. This big shift is already happening for many companies, and while that window is still quite open, it is projected to close in the next year. Aside from employment, many employees are starting to quit their jobs voluntarily. The reasons for this result are manifold. Western-based companies have been directly hit by the recession and therefore do not offer cost-benefit comparisons. Even now, start-ups are thriving even in a global recession, so they look to recruit interns from the bench. Hence, many people have come to look for freelance jobs in India. On-campus internships are said to be heavily impacted at this stage. Campus jobs are annual rituals for companies to hire more workers to meet growing demand, followed by layoffs. However, during the economic crisis, cutting costs reduces recruitment opportunities. Many work with contract workforce providers who can help treat contract freelancers as bench resources. This is an advantageous technique, and a good technique reduces costs. Mahindra, Wipro, and Infosys recently made the news for revoking a number of freshman appointment letters. This happened after a waiting period of about 3–6 months. The law was heavily criticized, and many authorities questioned the issue. More than 3,000 freshmen suffered, although market leaders were unable to provide a clear reason. The above incidents demonstrate the lack of confidence in the job market next year, with shifts in expectations and decisions, especially among freshmen.

Tips for balancing the recession crisis with company operations:

Reduce costs associated with the company's business work to improve customer service and employee experience. The goal is to maximize business with current customers. Use technology against cost. The recession the world faced in 2010 was different than it is today. We now have the technology and tools to complete many costly tasks. We focus on customers and employees. needs and deploys the most appropriate tools and technologies. This will be a one-time investment.

Aside from the fact that the global economy is currently under dark clouds, the only bright spot in all these recessions is the need for talent and employment in the IT industry remains unchanged. This is a technology-driven sector characterized by monthly developments and improvements.

The software that was the lifeline of many businesses until last year may now be obsolete. With the development of new technologies, the need for labour remains constant.

Recruitment methods may change due to the need to reduce costs, and there is a shift from hiring full-time employees to hiring freelancers' Job boards are currently flooded with jobs for Java Developer Contracts, React Developer Contracts, PHP Developer Contracts, and iOS Developer Contracts.

These openings clearly show that many businesses are in need of advanced technical support and that a slowing economy cannot change the basic needs for businesses to function.

Now is not the best time to take risks. The aim is to create a healthy balance and ultimately set realistic goals for the company. Forecasts show growth potential, but next year will be very slow.

Therefore, exceeding the possibilities only jeopardizes the business. Focusing on stability over big numbers should be your company motto. Focus on getting the job done rather than on who is doing it. Many companies get bogged down by the idea of recruiting the best freshmen from top universities. You need a competitive package to do the same, but your business may not be able to offer it. This limits your resources. The key is hiring staff to act as support when new goals need to be met. Although India is not primarily a direct target of the recession, many market leaders who were targets during this period have operations in India. Therefore, the Indian economy is directly or indirectly affected. But not being directly involved in this crisis is a gateway to growth. Moderate growth will look huge after the recession clouds dissipate. So now is the time to act smart and ruthless and focus on stability rather than lofty goals.