A tech rental hiccup, just take a skill pill

Major software exporters reportedly cut new hires in the first quarter of this fiscal year to ride out inflationary and geopolitical headwinds. We should not panic as the fundamentals, performance and competitiveness of the technology sector are solid. Recruitment has surged in the seven quarters since the pandemic has spurred demand for digitization from businesses and, of course, governments, leading to a surge in demand for IT services. Recently, layoffs at a few tech companies and startups have been reported in the US due to recession fears. Indian IT companies need to have a backup plan, enhance their competitiveness and continuously improve their capacity and ability to absorb and utilize emerging technologies.

Digital technologies and business models are constantly being reinvented globally. This resulted in an inevitable upheaval in human resource policies. Low-end labor is replaced by digital technologies such as robotic automation of processes in the background and others upstream. Middle managers are under increasing pressure to grasp and use digital technologies for the optimal needs of a business. Senior management is expected to respond and deliver in these hyper-competitive market conditions. Companies must adapt their hiring policies and strategies, cultivate and recycle internal talent and motivate people to develop and acquire new skills. There could be a slowdown in routine workforce expansion and, at the same time, the consolidation and rewarding of traditional developers and the operational and project workforce.

A vibrant ecosystem of startups has bolstered innovation. India can provide more and more sophisticated and demanding IT services and IT services. Digital transformation, centered on cloud, mobile, analytics, Internet of Things, data management, etc., offers huge opportunities for Indian IT. The sector needs many new skills and new ways of doing things so that companies can move to higher levels of performance, while overcoming challenges.

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