Deluge of freshers vies for trickle of it jobs

Deluge of freshers vies for trickle of it jobs

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  Deluge of FreshersVies for Trickle of IT Jobs Significant jump in percentage of fresh engineering grads accepting campus offers in past 3-4 years
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  Contd… As the numberof jobs in India's $160-billion information technology industry starts shrinking with each passing year, engineering graduates across are scrambling for every vacancy in a sector that was once a big employment generator. The percentage of fresh engineering graduates accepting campus offers from India's largest software firms such as Tata Consultancy Services, Infosys and Wipro has jumped significantly in the past three-four years, according to company data and executives. For instance, at Wipro, job acceptance rates have risen to 85% from 65% three years ago, said an ex ecutive who didn't want to be named. Others said this mirrors the industry average of 80-85% now against 65-70% in FY12. Applications are surging trebling at Infosys to 1.16 million in FY16 from FY13's 379,000. Experts said this is a reflection of the demand supply mismatch.
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  Contd… India produces 1.5million enginee ring graduates every year while the available jobs are pegged at 200,000-250,000, according to a recent Kotak Institutional Equities report. “The number of engineers graduating currently is far too high. And absolutely , there is a demand-supply imbalance because of that,“ said Vivek Kulkarni, former IT secretary in the Karnataka government. “When you have a large number of youngsters coming into the job market, you need the economy to be growing at an extremely high rate to match that supply , which is not happening right now.“ The high job acceptance rates are not restricted to the top companies. A similar story is unfolding across the rest of the industry, which currently employs well over 3 million. According to executives, headhunters, recruiters and placement heads at a number of tier-I and tier-II engineering colleges, job acceptance rates on average have jumped well over 10 percentage points in the past three years.
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  Contd… “This is aninevitable fallout of the overall demand-supply imbalance that you're seeing across the industry,“ said the Wipro executive cited above.“As growth rates have fallen over the past decade, the number of jobs has shrunk and there are fewer options available for graduates. Gone are the days when they could pick between three-four different job offers.“ With the advent of automation, which can potentially wipe out thousands of repetitive, manual IT tasks at large customers such as General Electric and Citigroup, newly minted engineering graduates face a bleak future. According to a recent report by HfS Research, India's IT services industry will lose 6.4 lakh “low-skilled“ jobs to automation in the next five years. By 2021, HfS said the IT industry worldwide will see a net decrease of 9% in headcount, or about 1.4 million jobs, with countries like the Philippines, the UK and US also taking hits, ET reported earlier this week.
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  Contd… “Broadly speaking, it'snow going to be all about skill, not scale,“ said Sangeeta Gupta, senior vice-president at industry lobby group Nasscom.“If students continue relying on what is being taught in colleges, much of which is fast becoming redundant, then they will be in for a tough time. They have no choice but to re-skill themselves.“ According to latest All India Council for Technical Education (AICTE) estimate, only 1 million engineering jobs are likely to be created over the next five years, implying that millions of graduates may find themselves unemployed. Placement heads at colleges said job acceptance rates have jumped significantly in the past few years, partly because of fewer options from the IT services industry.
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  Contd… “We are currentlyseeing acceptance rates of well over 90%,“ said KS Sridhar, dean of placements at People's Education Society Institute of Technology in Bengaluru. “Earlier, the range used to be around 80%.What we are seeing is increasing maturity amongst students when it comes to accepting job offers. Part of the reason is also due to the lower number of offers from the services industry.“ The broader demand-supply crisis in the IT sector has effectively shifted the balance of power in favour of India's top IT firms, which can adopt more flexible recruitment methods. “Excess supply will give companies flexibility to recruit in line with requirements. We have already seen this departure in the case of the IT industry: Companies now recruit in the first half of the eighth semester from the sixth semester (18 months in advance) earlier,“ said analysts Akhilesh Tilotia and Jaykumar Doshi in the Kotak Institutional Equities report. A graduate programme in India has eight semesters over four years.
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