Indian-based IT services firms are planning to cut back on hiring freshers (fresh graduates) due to a weak deal pipeline amid lingering recessionary fears in the US, reports Business Today. The publication points out that IT services firms such as TCS, Infosys, Wipro, HCL, Tech Mahindra, Cognizant, Accenture and others had hired freshers in droves in anticipation of growth in 2021 and 2022 but are now planning to reduce hiring. Staffing firm TeamLease Digital has projected a 30% year-on-year decline in FY24.

Furthermore, several thousands of fresh graduates from the 2022/2023 engineering colleges who found jobs with IT services companies, on- or off-campus, are facing endless onboarding delays. Harpreet Singh Saluja, President of Nascent Information Technology Employees Senate (NITES), estimates the employees' union has received complaints of onboarding delays from 20,000 to 25,000 students from the past two pools of candidates.

"These are young people, and this delays and revoking of offers is totally wrong," says T.V. Mohandas Pai, Chairman of Aarin Capital and former Infosys CFO. Industry veterans say firms should onboard freshers and train them right away, even if it means taking a hit financially for two to three quarters. "Yes, the business exigency is a real point. But they are still making profits and losing people at a reduced rate. They may have to hold on to surplus people for one to two quarters," added Pai.

Vineet Nayar, Founder Chairman of Sampark Foundation and former CEO of HCL Technologies, said, "Growth will come back for sure, today or tomorrow. It would be a wise decision to onboard freshers now and win their trust and respect."