BENGALURU: Recruitments in IT sector will be reduced by 20 percent in 2016 since major IT recruiters like TCS and Infosys are planning to invest more on automation by hiring less people, a report from the National Association of Software and Services Companies (Nasscom) stated.

CP Gurnani, Chairman of Nasscom and CEO of TechMahindra noted that this fall in IT recruitment will not have impact on the revenue growth of the country which is fixed at 10-11 percent for the current financial year.“The recruitments will slow down as compared to last year. I think it will be 15-20 per cent relatively lesser in headcounts. But it will not impact the revenues,” Gurnani told PTI on the sidelines of ‘Global In-house Centres Conclave.’

Mumbai-based Centrum Broking has stated in its recent report that Cognizant and HCL in Chennai have been emphasizing on rising utilization rates through automation which has led to a fall in IT recruitment. TCS has announced last week that it also will be hiring minimum number of freshers. The IT giant is expecting that around 32,000 freshers will join out of 45000 offers made at campuses across India. Infosys said last week that its total employees count was reduced from 1,76,187 last year to 1,94,044 in the March quarter.

Gurnani in reply to a query has said that the reduction in oil prices may impact the domestic IT industry since oil-dependent economies are under constant pressure. But he said that the impact will be minimal. “Looking at my member companies and our global innovation centres, only few of them are from West Asia but we get around 60 percent of revenues from America and 25 percent from Europe. So I think the reduction in IT recruitment will not have much impact in India,” stated Gurnani.

Talking about the impact of U.S. elections outcome, Gurnani stated that, some of the U.S. senators have to answer if they need India more or India needs U.S. more. “I think we need each other. So there will not be much impact.”

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