Hiring in India’s information technology sector that started picking up in the first half of the current financial year after a weak fiscal 2024 is set to post faster year-on-year growth in the next six months, estimates from staffing companies suggest.

Data from at least two staffing firms indicate a 10-12% likely increase in hiring demand from most software service for the second half of the ongoing fiscal 2025 compared with a year earlier. The sector, according to them, is projected to report 8-10% for the first half ending September 30.

For the fiscal year through next March, hiring is seen increasing by up to 8.5%. That would come after a year when new jobs created in the IT industry had dropped, to 60,000 as per industry body Nasscom’s estimates compared with 270,000 in FY23.

The first-half numbers indicate a robust recovery in IT hiring, said Krishna Vij, vice president at TeamLease Digital which now projects 10-12% on-year growth in the second half through March 2025.

“Organisations are increasingly investing in technology and skilled professionals, driving the need for talent across sectors. Overall, the hiring landscape remains positive, reflecting the ongoing evolution of the market and its focus on innovation,” Vij said.

The hiring momentum signifies a pickup in tech spending and deals in the sector, as central banks cut rates amid improving macro conditions in the key markets of the US and Europe.

Quess Corp IT Staffing’s data show a 21% year-on-year increase in hiring in August this year.

Industry reports from the second quarter (July to September) indicate that hiring spiked in July as well with a 17% YoY increase. Artificial intelligence and machine learning jobs contributed significantly to the growth, while geographically, Bengaluru led the surge in hiring.

“This growth can be attributed to several factors, including accelerating digital transformation where the ongoing shift towards digital technologies is driving demand for IT services across various industries. Additionally, Indian IT firms are expanding their global footprint, leading to increased hiring needs,” said Kapil Joshi, deputy chief executive at Quess IT staffing.

TeamLease Digital estimates IT services hiring in FY25 to increase 8.5% from FY24, while Quess data suggest a slower pace of 4-5%.

The improved hiring activity in the $250 billion Indian technology outsourcing industry is fuelled by sustained digital transformation initiatives, heightened cybersecurity needs and the expansion of cloud services.

Earlier this week, ET reported that IT companies including Tata Consultancy Services, Infosys, HCLTech and Wipro have signed at least 33 deals in July and August, signalling the need for talent to execute the projects.

According to Quess Corp, IT services firms are likely to hire between 40,000 and 50,000 professionals in FY25. This is lower than Nasscom’s estimate for FY24.

Quess anticipates fresher hiring to increase by 12-14% by the end of FY2025, with TCS and Infosys planning to onboard a cumulative 82,000 employees.

Fiscal 2024 saw the lowest intake of freshers in the IT sector since 2000. “However, FY25 is expected to witness a significant rebound, with a potential 100% YoY growth, surpassing 150,000 entry-level hires,” Joshi said.

Hiring in India’s information technology sector that started picking up in the first half of the current financial year after a weak fiscal 2024 is set to post faster year-on-year growth in the next six months, estimates from staffing companies suggest.

Data from at least two staffing firms indicate a 10-12% likely increase in hiring demand from most software service for the second half of the ongoing fiscal 2025 compared with a year earlier. The sector, according to them, is projected to report 8-10% for the first half ending September 30.

For the fiscal year through next March, hiring is seen increasing by up to 8.5%. That would come after a year when new jobs created in the IT industry had dropped, to 60,000 as per industry body Nasscom’s estimates compared with 270,000 in FY23.

The first-half numbers indicate a robust recovery in IT hiring, said Krishna Vij, vice president at TeamLease Digital which now projects 10-12% on-year growth in the second half through March 2025.

“Organisations are increasingly investing in technology and skilled professionals, driving the need for talent across sectors. Overall, the hiring landscape remains positive, reflecting the ongoing evolution of the market and its focus on innovation,” Vij said.

The hiring momentum signifies a pickup in tech spending and deals in the sector, as central banks cut rates amid improving macro conditions in the key markets of the US and Europe.

Quess Corp IT Staffing’s data show a 21% year-on-year increase in hiring in August this year.

Industry reports from the second quarter (July to September) indicate that hiring spiked in July as well with a 17% YoY increase. Artificial intelligence and machine learning jobs contributed significantly to the growth, while geographically, Bengaluru led the surge in hiring.

“This growth can be attributed to several factors, including accelerating digital transformation where the ongoing shift towards digital technologies is driving demand for IT services across various industries. Additionally, Indian IT firms are expanding their global footprint, leading to increased hiring needs,” said Kapil Joshi, deputy chief executive at Quess IT staffing.

TeamLease Digital estimates IT services hiring in FY25 to increase 8.5% from FY24, while Quess data suggest a slower pace of 4-5%.

The improved hiring activity in the $250 billion Indian technology outsourcing industry is fuelled by sustained digital transformation initiatives, heightened cybersecurity needs and the expansion of cloud services.

Earlier this week, ET reported that IT companies including Tata Consultancy Services, Infosys, HCLTech and Wipro have signed at least 33 deals in July and August, signalling the need for talent to execute the projects.

According to Quess Corp, IT services firms are likely to hire between 40,000 and 50,000 professionals in FY25. This is lower than Nasscom’s estimate for FY24.

Quess anticipates fresher hiring to increase by 12-14% by the end of FY2025, with TCS and Infosys planning to onboard a cumulative 82,000 employees.

Fiscal 2024 saw the lowest intake of freshers in the IT sector since 2000. “However, FY25 is expected to witness a significant rebound, with a potential 100% YoY growth, surpassing 150,000 entry-level hires,” Joshi said.