There is a glimmer of hope for tech professionals in India amidst the global economic downturn. A significant portion, around 30-40%, of the 300,000 technology jobs that were lost globally due to layoffs could potentially shift to outsourcing hubs like India in the coming months. The report suggests that many of these jobs are likely to be distributed among the existing workforce of large technology companies in India.
India is anticipated to be the major beneficiary of this trend in the medium to long term. Sanjay Shetty, the director of professional search and selection at Randstad India, stated that almost every company they have spoken to is considering expanding their operations in India. He expects a portion of the technology jobs that were eliminated globally to move to India by 2024-25.
In the past six months, various global technology firms, including Google, Microsoft, Meta, Amazon, and Salesforce, as well as major banks and telecom companies, have announced multiple rounds of layoffs.
Data from staffing firm Xpheno reveals that while the Indian workforce of large tech companies constitutes about 17% of their global staff, it has grown by 35% in the last year, compared to a 12% increase in the rest of the world. The banking, financial services, and insurance sector saw the second-highest growth, with a 21% increase in headcount. The number of employees in Indian global capability centres (GCCs) rose from 1.45 million in fiscal year 2022 to 1.6 million by the end of fiscal year 2023, according to Kamal Karanth, co-founder of Xpheno.
The desire to enhance profitability by leveraging India-based centers is driving companies to focus on work allocation in the country. Sanjay Shetty of Randstad India explained that while there is a slowdown in North America and Europe-UK markets, companies are keen on utilizing their in-house delivery and capability centers in India. Additionally, many companies are upskilling and reskilling their employees to take on roles that were rationalized elsewhere, and they are also considering hiring freshers and experienced professionals.
