Engineering grads likely to be left in a limbo in job market

With drastic fall in growth among IT companies projected for the current fiscal both by IT industry body Nasscom and IT majors individually, engineering graduates passing out in 2013 will find jobs scarce.  What is likely to turn this situation from worse to scary is that in 2014 the number of engineering graduates passing out will double from the current level of 6,50,000 to nearly 12 lakh.Chennai Engineering Colleges A cursory look at the growth projected by the top four IT companies in India for the current fiscal is the first clue to the shape of things to come in the employment market. IT companies on an average absorb 2 lakh or nearly a third of engineering graduates every year. Engineering Graduation Despite their deep pockets and ability to have reserve force, what is popularly known as ‘the bench’, the number hired by the industry is expected to halve next fiscal to nearly 1 lakh, according to the spokesperson for one of the IT majors who wishes to remain anonymous. The fab four among IT companies, TCS, Cognizant, Infosys, and Wipro, together hired close to 1 lakh graduates last year and this number is likely to fall to anywhere between 50,000 and 55,000. The rest of the industry should also see a similar fall in hiring and taking the total to 1 lakh during the current fiscal. From 20 per cent last year, Nasscom is projecting the growth to slip to 11-14 per cent this year. Infosys has already given guidance for the current year to be in the region of 5 per cent against 16 per cent last year. TCS is expecting to grow at 14 per cent (estimated by analysts) against 24 per cent last, and Cognizant too has given a projection of 20 per cent against 33 per cent last year. (All numbers in US dollar terms) The bleak outlook for the current year will have a direct impact on these companies’ ability to absorb engineering graduates.