IT services hiring shows signs of traction, intent up 10% in January

The Indian IT services sector is showing some green shoots with a 10% increase in hiring intent as of January end, recruitment experts told ET. This comes after the macroeconomic slump in 2023 led to a massive headcount correction last year.

Last quarter, the top five companies together reported a 61,000-plus drop in headcount year-on-year.

Most IT firms, however, are optimistic about the growth prospects starting FY25 in April this year given the volume of deal pipeline in the quarters ahead even as they are not optimistic about demand reviving immediately. Hiring mandates are usually given out a quarter in advance and signify uptick in demand.