In recent years the tech industry has provided a much-needed revolutionary boost to the economy worldwide. The rising R&D expenses, internet penetration, technology advancements and adoption have led the way to a tremendous increase in manpower leveraging this technology. Particularly C-Suite hiring has been the driving force behind the increased tech usage in our lives. From AI to machine learning, speech recognition to multilingual applications, technology has undoubtedly eased our day-to-day transactions.
The job market for the tech industry has however been volatile since the onset of the pandemic. It has been shaky at the edges with many factors contributing to the turbulence. There was undoubtedly scale with diverse tech domains mushrooming soon after for the need for tech-driven convenience. As a C-Suite bespoke search firm for tech leaders, we at Purple Quarter have also witnessed a considerable drop in hiring across industries in the last quarter.
What began as a boon during the covid epoch soon became the cause for change in the industry. Employees and the leaders were getting too comfortable with the hybrid work model which led to difficulty in sliding back to the old ways of work. This move inevitably led to willing resignations causing the Great Resignation or the Big Quit. Few others let go of their positions either due to unfavourable health conditions or to attend to their respective families. Post-covid workspace was a new identity.
Favourably at that point, these voluntary resignations lead to an employment gap for replacement. These replacement roles were highly mistaken with new hiring which in reality meant no new positions were created rather old ones were calling for the right or next best fitment.
Among various industries that are trying to keep themselves upbeat, the EdTech segment in particular has been going through a tough period of constant layoffs and challenging business times. This has deeply impacted the C-Suite hiring processes. The segment has become lethargic since the last quarter. On the other hand, Fintech has been on an upward trajectory promising more opportunities stemming from the requirement of necessary Tech leaders.
With funding stagnation, hiring to a large extent has taken a backseat. As per recent stats, companies remain cautious about recruitment amid the rising risk of recession and high inflation in their key markets, information technology’s share of India’s white-collar jobs market dropped below 50% in October for the first time in three years. In October, 1,06,000 job openings were posted in the IT sector, a 12% decline compared with September’s 1,21,000.
In October, there were 225,000 active job openings in the white-collar employment market, up from 210,000 the previous month. White-collar jobs have historically been recruited primarily by the IT sector. It contributed more than 80% to the pandemic in its last year.
The real question now is, whether new roles will come up? Experts and economists believe that the current scenario will prevail and the hiring scenario is likely to get better despite the fear of recession in the advanced economies of the West. The tech industries are already in surplus on the C-Suite bench. As global demand is being hit due to recession risk, the developed markets are hiring more on a need basis.
We believe the mandates are already increasing this quarter. Where on one hand, investors are getting cautious, businesses are becoming more aware of their actions. With this prudent mindset, thoughtful hiring will transpire. Cautious funding will lead to cautious business leaders making strategic moves for the future.
The market is already labouring on the replacement of those moving on as it opens new positions for seasoned tech hires. For as long as there is a promising business model, an interested investor, C-Suite tech leaders will be hired to drive the objective.
Authored by Richa
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