Reasons behind the crisis in Indian IT industry:
- Nearly 30 percent employees of all software companies are on bench, i.e. without any project to work on.
- IT sector will suffer in near future as the global demand for industry is not expected to rise significantly.
- Recently, IT companies have taken initiatives to automate more of their processes resulting slowdown in hiring.
CEO of Tata Consultancy Services (TCS), N Chandrasekaran said, "Overall, hiring has slowed down. It's all about demand and supply and will vary from company to company and their order book."
Times of India quoted Mr Chandrasekaran as saying, "This year, people will not recruit in large numbers for two reasons. In the last two years, the growth rate has not been good and the utilization levels have come down. Since the last two years were not good, companies are cautious this year."
Meanwhile, Vice-Chairman of Cognizant, Lakshmi Narayanan said, "In the future, there could even be downward pressure as many companies have started hiring non-engineering graduates for some of the engineering roles.
CEO of Zensar Technologies, Ganesh Natarajan has also been quoted as saying, "Entry level salaries could remain flat. There is a perception that industry salaries went up by 12% this fiscal, but the reality is that it has gone up by 6% and entry-level salaries have been flat."