Indian IT giants ride US jobs boom, hire more and more techies

Posted by Admin April 12, 2024 Jobs

The recent revival in tech hiring across the United States, indicating a rebound in demand, presents a promising outlook for Indian IT companies with significant operations in America. According to an analysis of US government data by the Computing Technology Industry Association, tech companies in the US added an estimated 6,000 workers last month.

Indian IT giants have established a robust presence in the US, with Tata Consultancy Services (TCS) employing 50,000 people, Infosys 35,000, HCL Technologies 24,000, Wipro 20,000, and LTI Mindtree 6,500. Together, these companies contribute around 2% to the US tech industry workforce, as per an HDFC Securities report. The widespread presence of these firms across various US locations positions them advantageously for the ongoing demand recovery.

The surge in job growth has been primarily driven by hiring in technology services, software development, and cloud infrastructure. In March, US employers posted 191,000 new job openings for tech positions, marking an increase of 8,000 from the previous month and the highest volume since August 2023.

Overall, there were an estimated 438,000 active tech job postings in March, with software developers and IT support specialists witnessing the largest increase in openings between February and March. According to CompTIA’s report, cities like New York, Washington, Dallas, Chicago, Los Angeles, and San Francisco recorded the highest volumes of job postings in March.

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HDFC Securities analysts highlighted that tech employment in the US grew by 1.2% in 2023, with the workforce expanding by 117,000 to reach 9.6 million, inclusive of non-technical employees. CompTIA forecasts a 3.1% increase, equivalent to over 300,000 net additions, in the US tech workforce for the 2024 calendar year.

As bench strength is optimized and utilization levels approach the six-year average (although still below the 2022 peak), HDFC Securities anticipates a resumption in hiring within the sector in the coming quarters, with growth continuing to be volume-led. Despite significant layoffs in the tech sector during the 2023 calendar year, estimated at 500,000, the US tech workforce saw additions, and with layoffs moderating since then, hiring activity is expected to rebound in correlation with demand and revenue growth.HDFC Securities noted, “The last few quarters have witnessed a sequential dip in headcount, which could reverse in the second half of the 2025 fiscal year. The upcoming Q4 results will reflect the growth divergence within companies, and we expect growth to bottom out and recover gradually in FY25.”with inputs from TOI