Q4 results show 6% of degrowth in IT staffing industry

The annual Flexi Staffing Industry Employment Trend Report-2023, released on 23rd May, showed a drop in new employment generation in the IT flexi staffing sector, which mirrored the global slowdown in IT hiring and the ongoing process of employment right-sizing across markets.

The IT staffing industry has been gradually experiencing a fall in demand following the second quarter, which intensified in the fourth quarter, leading to a degrowth of 6 per cent in FY23.

The IT industry witnessed a significant 7.7 per cent year-on-year (YoY) decrease, with substantial influences from factors such as the US markets, the ongoing Russia-Ukraine conflict, and the repercussions of global financial markets.

This decline in the IT staffing industry emphasises the importance of strategic planning and efficiency improvements to navigate the challenges imposed by the geopolitical scenario and meet the evolving demands of the market ,the report said.

The organisation that represents the manpower outsourcing industry states in this report that the industry achieved a strong growth of 14 per cent year-on-year in FY23. 

During this time, the members of the Indian Staffing Federation collectively created 1.77 lakh new flexible jobs.

The increase in employment was particularly noticeable in important sectors like e-commerce, logistics, manufacturing, tourism and hospitality, FMCG, consumer durables, and healthcare.

In FY23, women constituted 24 per cent of the flexible workforce, maintaining their participation.

The Indian Staffing Federation, mentioned that during the previous financial year, the staffing industry in India played a crucial role in offering many individuals their first formal job opportunity, marking their entry into the job market.