Hiring slump and faking the hiring market! Staffing firms unnerved...GCCs getting real with temp staffing, shedding million dollar tech leaders in India GCCs
Anil Ethanur; Brilliant takes. 100% agree with you on the scenario around recruiters, recruiting firms and the mainstream GCCs and IT Services firms.
I have been hiring for 5 SaaS products with global markets in Life Sciences tech, in my previous assignment with a 3500 people firm with multiple offices in India and the US, EU, etc.
2021, in market onboarding ~600. Attrition during the same time ~600. This kept 25 recruiters at various levels busy. Down to May/June 2022, the slump started to hit, client's enthusiasm to buy projects retracted and continued so and in OND of 2022, nearly all IT services, even product and SaaS firms started feeling the recession but no one dared say a word. 25 recruiters had foot on the gas but all those million interviews were not producing offers for simple reason; recession in the US, a clear case of being in denial mode! Companies with garrison full of internal recruiters continued to spend time in silence...decent firms, didn't lay off recruiters, despite almost no hiring happening and to top it up attrition rates plunged too...
Silently, recruiters started feeling anxious, got no raise, lot many put on PIPs and many got Silent Layoffs.
Recruiting market that I have friends into, expected Q2 to rebound the low life hiring sentiments but that didn't happen they say. Rather they all agreed and as you also mentioned Anil, the temp staffing has picked-up and Perm remain subdued! Interestingly even the GCCs in turn of events as market sentiments drive, have focused all on temp staffing in recent months. This is what you also observed. Just exchanging my notes here Anil :)
Question is: What happens if recession looms larger and deeper, as some market pundits predicted it to stretch it till Mar-Apr 2025.
Not just lateral hiring, but even the campus hiring has borne the brunt in 2023 and 2024. Many thousands of those engineers offered in 2022 are still waiting for onboarding dates. Infosys CEO assures them again this week. Wipro sent them termination/regret letters, on one or other pretext. IITs have seen nearly 30% unplaced..
Where are we headed?
2021, in market onboarding ~600. Attrition during the same time ~600. This kept 25 recruiters at various levels busy. Down to May/June 2022, the slump started to hit, client's enthusiasm to buy projects retracted and continued so and in OND of 2022, nearly all IT services, even product and SaaS firms started feeling the recession but no one dared say a word. 25 recruiters had foot on the gas but all those million interviews were not producing offers for simple reason; recession in the US, a clear case of being in denial mode! Companies with garrison full of internal recruiters continued to spend time in silence...decent firms, didn't lay off recruiters, despite almost no hiring happening and to top it up attrition rates plunged too...
Silently, recruiters started feeling anxious, got no raise, lot many put on PIPs and many got Silent Layoffs.
Recruiting market that I have friends into, expected Q2 to rebound the low life hiring sentiments but that didn't happen they say. Rather they all agreed and as you also mentioned Anil, the temp staffing has picked-up and Perm remain subdued! Interestingly even the GCCs in turn of events as market sentiments drive, have focused all on temp staffing in recent months. This is what you also observed. Just exchanging my notes here Anil :)
Question is: What happens if recession looms larger and deeper, as some market pundits predicted it to stretch it till Mar-Apr 2025.
Not just lateral hiring, but even the campus hiring has borne the brunt in 2023 and 2024. Many thousands of those engineers offered in 2022 are still waiting for onboarding dates. Infosys CEO assures them again this week. Wipro sent them termination/regret letters, on one or other pretext. IITs have seen nearly 30% unplaced..
Where are we headed?
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