A Kotak Institutional Equities report states that demand for engineering graduates in the IT industry is reducing due to slowdown in revenue growth, change in business mix and preference for science graduates to lower costs. The report states that the business mix of Indian IT is changing with incremental growth accruing from analytics, consulting, BPO etc., which requires employees with different skill profiles. Further, protectionism and expansion of delivery network to other low-cost locations such as Mexico, China and Eastern Europe are leading to accelerated hiring by companies outside India. Besides re-badging that reduces the demand for Indian engineering talent, Indian IT companies too have significantly stepped up hiring in local geographies.
Source: The Economic Times