The IT sector in India has attracted budding aspirants over the course of its development. Universities had churned out engineers by the thousands in order to meet this demand. However, this requirement has witnessed a steady decline over the years. An IT sector analysis shows that opportunities for IT engineers and others specialized in this field have reduced to a great extent.
India’s third largest exporter of software, Wipro, has recently reported stagnant sales. It has forecast a bleak earning rate with the probability that sales will shrink in the June quarter. In addition, a pioneer in global technology, IBM, has fallen short of its earnings estimates, which was a first for the company in eight years. IBM shares that made it through the financial crisis of 2008-09 slumped 8% at the New York Stock Exchange. Besides, Accenture expects sales to have a growth at just below the midpoint of the estimated 5-8% till August 31.
The variance in growth in these top companies has resulted in IT sector analysis predicting lesser expectations of growth. Discretionary spending has been negative even though a small increase is estimated in technology spending. In India, the demand for graduates in IT engineering has come down owing to the reduction in revenue growth. The change in the areas of business and a penchant for science graduates who can be hired at lower costs indicate that IT engineers are losing out in this field.
Indian IT sector shifting to new grounds
A new phenomenon has been sweeping the industry as IT sector analysis shows. Many Indian businesses in the IT sector have been changing tracks to other quarters. New business operations starting from analytics to consulting have been charted by IT companies in India. Subsequently, the enterprises are inclined to hire fewer engineering graduates and simultaneously take in people who are already equipped with the experience and skills they need. Figures depicting the Indian IT sector analysis highlight the trend followed by companies with regard to hiring.
There are other implications arising from this situation. The increase in consumption is the basis on which growth projections are devised. The fact that graduates start work from a lower salary and little or no competition implies only a slight possibility of future raise. As a result, even if these graduates move to higher positions in the career ladder, the disposable income may not show any signs of increase.
The Indian education sector is teeming with countless IT engineers whose fate hangs in the balance due to the bleak economic and hiring prospects in this sector. Many of these professionals will have to turn to other industries in the near future to survive the rough road ahead.