Adverse business conditions led major IT firms to cancel much hiring

Due to unfavorable business conditions, IT behemoths like Wipro, Infosys, and Tech Mahindra (1) have canceled multiple job letters issued to the students and even canceled employment following a lengthy onboarding procedure.

Hundreds of recent graduates who got offers from IT firms had their offer letters canceled after the onboarding process was delayed by about three to four months. Students assert that they applied for the job three to four months ago, went through the interview process, received an offer letter, and are now awaiting the onboarding procedure.

However, these IT forms later caused a delay in the onboarding procedure. As a result, students now receive a letter informing them that their employment letter has been canceled rather than the joining packet. Students also claim that the tech firms canceled their offer letters due to eligibility requirements and business policies (2).

Although the news of IT companies delaying onboarding or withdrawing their offer letters comes at a time when there is talk of a global slowdown in the IT sector, it is generally believed that this is because of the tightening money supply. Interest rates are rising globally, and the supply of easy money available to startups in the IT sector is running out.

All IT businesses, from recently founded startups to established tech behemoths, are being impacted by this due to the hiring freezes implemented by many businesses due to the challenging business climate. Behemoths like Google, Microsoft, and Meta have ordered teams to utilize their resources better.

Earlier reports indicated that Indian IT companies were delaying the onboarding of new hires by three to four months, which is cause for concern. On the other hand, Prime Minister Narendra Modi declared that the government is making efforts to lessen the impact of the global economic issues that many nations are currently experiencing due to the COVID-19 pandemic.

After giving 75,000 appointment letters to applicants for government jobs (3), Modi later addressed the "Rozgar Mela," (4), stating that the Centre is also working on other fronts to provide as many job opportunities for youth as possible.

According to PM Modi, the Indian government is adopting new steps and taking risks to prevent the nation from being impacted by these challenges, despite the crisis the IT sector and the world are facing, which is influencing everywhere.

In the past, the prime minister sent 75,000 job applicants electronic appointment letters. The new hires from across the nation will work in 38 ministries or departments of the Government of India. They will join the organization at different levels in Group A and B (gazetted), Group B (non-gazetted), and Group C.

Following a statement released by the government, appointments are being made for positions in the central armed forces, sub-inspectors, constables, LDCs, stenographers, PAs, income tax inspectors, and MTS. The Ministries and Departments are making these hires either directly or through hiring organizations like the UPSC, SSC, and Railway Recruitment Board.

According to the government, the selection procedures have been streamlined and made more technologically advanced to facilitate faster hiring. In June, the prime minister also requested that 10 lakh individuals be hired on a "mission mode" within the next 18 months by various government departments and ministries (5).