Staffing firms are projecting an actual hiring increase of 7-8% in the second half of this calendar year, reports The Economic Times, citing data gathered from Teamlease and another recruitment firm. It comes as active demand for technology talent hit a new monthly high for this fiscal year in February, kindling hopes of recovery in the IT services job market that has hit a two-decade low this fiscal. Hiring mandates for IT talent stood at 124,000 in February, which is a nearly 50% jump compared to January and 33% higher than in December, data from staffing firm Xpheno shows. The data cautioned hiring mandates are given out by companies based on future prediction of demand and all of them may not lead to actual hiring.

“Active talent demand in the tech sector is displaying strong signs of positive movement in nearly three quarters,” said Krishna Gautam, business head of direct hiring, IT at Xpheno. “Talent demand from the tech sector collective of IT Services, software products and tech startups had its first growth period this fiscal.”  Gautam expects demand for IT talent to improve further to 150,000 in March.

Teamlease expects the active demand to catalyse a hiring increase of 8.2% in anticipated turnaround from the second half of 2024. “The anticipated economic recovery, increased IT spending and funding in the startup sector, and an upsurge in GCCs (global capability centres) further contribute to the optimistic outlook for the anticipated hiring turnaround in the upcoming year,” said Krishna Vij, business head – IT staffing at Teamlease Digital. “In order to bolster order books, keep a bench for upcoming projects, or demonstrate skills, businesses are deliberately backfilling positions.”