While the Islamic world is protesting Donald Trump’s new policies regarding new immigration policies, the Indian hiring scenario is also bearing the brunt of the new president and his policies.
IT companies, ordinarily among the biggest recruiters at B-school campuses, have cut hiring this placement season due to circumstances US President Donald Trump‘s protectionist stance, subdued growth numbers, and increasing automation.
Recruitment in the IT sector has gone down by nearly 20-40 percent this year in Tier II and some Tier I B-School as well. At Management Development Institute (MDI), Gurgaon, IT hiring fell by 26 per cent; at Great Lakes Institute of Management (GLIM), Chennai, it dropped 30 percent; and at Welingkar Institute of Management Development and Research (Mumbai), it’s down by 30-40 per cent.
At one B-School, Infosys recruited only 13 people as compared to 40 people last year; while Dell hired three instead of five and Wipro recruited only five instead of nine last year. This year, at least 30 percent less hiring is expected in the IT industry as compared to last year, said Saveeta Mohanty, associate dean, career advisory services at Xavier Institute of Management, Bhubaneswar (XIMB).
According to a survey, last year, six of the top 10 recruiters by numbers across 26 B-Schools were from the technology space. These included names like Cognizant, Wipro, Infosys, Accenture, IBM and Tata Consultancy Services. However, this time around, the scenario is substantially different.
Earlier, in January it was reported that TCS and Infosys would hire more engineers from their US campus as they brace themselves for more stringent visa norms under the new government. Among Trump’s top election pledges were restricting immigration and bringing jobs back home.
At his inaugural speech, Trump clearly said, he will protect his fellow Americans and ensure a high economic growth. His exact words were “buy American and hire American.”
According to an analyst, studying the IT industry, mentioned that the Trump Effect is there and adding to that is the fact industry is recording a somewhat slower growth rate. Factors such as automation cannot be overruled either.
R Shreenath, director, corporate and career services, Great Lakes, acknowledged proposed protectionist policies of the new US president have affected IT hiring in a big way this year. He said even Great Lakes witnessed a 30 percent reduction in IT hiring numbers as compared to last year. While all regular recruiters like Cognizant, Accenture, and TCS came in for campus recruitment, they hired much fewer job candidates in 2017.
An Infosys spokesperson, however, said: “Hiring from the US may not have an abundant influence on the recruitment numbers in India.”
On a final note, it can be said that the overall hiring in the IT industry has been drastically affected since Donald Trump was sworn in as the President of the United States.
Source: Economic Times