Jobs in finance and consultancies compensate for the loss of investments in the IT sector

In this placement season, non-IT firms are filling the void resulting from a drop in offers at engineering campuses from the number one traditional recruiter among the sectors. Among the most active headhunters now are finance, consulting and basic engineering, as information technology takes a back seat and wary of a looming recession.

At Visvesvaraya National Institute of Technology (VNIT), IT has been overtaken by finance and consulting.

“Although none of the job offers were revoked, the participation of the IT sector fell from the first place of almost a third of the offers to 15-20%. On the other hand, finance and consulting firms are leading the way so far. However, the placement season is still ongoing, so only time will tell the final verdict,” said Kishor Bhurchandi, Associate Dean of Training and Placement at VNIT.

Similarly, Amity University has also seen consulting, e-commerce and payment gateway companies as well as manufacturing and automotive offerings expand amid falling IT hiring.

“Beyond IT services, we have seen strong demand from consulting firms. Students with similar backgrounds are hired at good packages for the profiles of business analysts, data scientists, consultants, etc. increased on-campus placements,” said Anjani Kumar Bhatnagar, Deputy Director of the Technical Placement Center at Amity University.

According to Bhatnagar, the low attendance of top IT companies in on-campus internships will drive students to explore start-ups and inspire them to pursue higher education in India and abroad. “On the other hand, companies in finance and banking, automotive, e-commerce, electronics, robotics, telecommunications (with a strong push for 5G in India), ‘artificial intelligence and machine learning will emerge as major recruitment drivers.’

However, IT companies also played a strategic role in the magnitude of the hiring cuts which varied from campus to campus.

For example, top colleges like the Birla Institute of Technology and Science (BITS) and the Manipal Academy of Higher Education (MAHE) have not seen a major impact, while the institutes of Tier II and III cities bore the brunt of the hiring dip.

According to the BITS Placement Office, the institute’s campuses in Pilani, Hyderabad and Goa “did not notice a drop in demand for IT” during the first round of placement which started in August.

“Some computer science majors have verbally reported a drop in hiring at Tier II and Tier III colleges. They gave assurances that BITS numbers would not be affected and demonstrated this in the first hiring season,” the office said. He added: “The reason they cited for keeping BITS numbers intact is that his talent has been instrumental in helping companies through difficult times, due to their superior technical management skills and their mastery of cutting-edge technologies.”

Similarly, MAHE did not experience a significant decline in IT sector participation.

“We have not seen such a drop in participation so far in the core IT sector. However, a few of the global players have reduced their consumption. The reasons given are the overall reduction in the number of recruitments due to onset of the recession in the U.S. Another reason is that these companies hired more people last year and are balancing them with downsizing this year,” his employment office told .

He added that feedback from IT companies, particularly global players, suggested the reduction in inflows would continue through the end of 2023. “The industry is waiting and monitoring the impact of the recession in the United States. We are seeing a trend of non-IT companies coming to campus much earlier compared to previous years. This is a good trend and gives us confidence that these sectors will compensate for the reduction in the number of IT companies. »

A look at the previous year’s sector allocation at MAHE shows a slight decline in the share of the core IT sector, from 53% in 2020-21 to 51% in the 2021-22 placement season. The same goes for the IT services sector, which fell from 5% in 2020-21 to 3% in 2021-22.

On the other hand, sectors like basic engineering and consulting/analytical showed a marginal increase of 23% and 13% to 25% and 15% during this period.

Meanwhile, the placement season has so far looked promising on BITS campuses with big-name recruiters like Google, Microsoft, Amazon, Visa, Adobe, Cisco, Uber, Sprinklr and Indeed hiring aggressively with DE Shaw choosing students at Rs 60 lakh per year. Some of the new recruiters who visited for full-time IT hiring were Palo Alto Networks, Komprise, Hilti, Tvarit and Arista Networks, with CTCs reaching up to Rs 54 lakh per year.

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