The recent revival of tech hiring in the United States brings positive news for Indian IT companies. With a significant presence in America, these companies are well-positioned to benefit from the recovering demand and contribute to the growth of the US tech industry.
Tech Hiring Rebound in the US Signals Promising Prospects for Indian IT Companies
( Credit to: Timesofindia )
The recent revival of tech hiring in the United States brings positive news for Indian IT companies. With a significant presence in America, these companies are well-positioned to benefit from the recovering demand and contribute to the growth of the US tech industry.
Expansion of Indian IT Companies in the US
Indian IT firms have been expanding their footprint in the US, with companies like TCS, Infosys, HCL Tech, Wipro, and LTIMindtree employing a substantial number of professionals. TCS alone has 50,000 employees in the US, followed by Infosys with 35,000, HCL Tech with 24,000, Wipro with 20,000, and LTIMindtree with 6,500. Together, these companies account for approximately 2% of the US tech industry workforce, as highlighted in a report by HDFC Securities.
The broad-based presence of Indian IT companies across various locations in the US positions them well for the recovery of demand. The recent surge in job growth was primarily driven by hiring in technology services, software development, and cloud infrastructure.
Demand for Tech Positions in the US
In March, US employers posted 191,000 new job openings for tech positions, marking an increase of 8,000 from the previous month and the highest volume since August 2023. The total number of active tech job postings in March reached an estimated 438,000.
Among the tech job openings, software developers and IT support specialists witnessed the most significant increase between February and March. Major cities such as New York, Washington, Dallas, Chicago, Los Angeles, and San Francisco recorded the highest volumes of job postings in the tech sector during the same period, according to a report by CompTIA.
Growth of the US Tech Workforce
HDFC Securities analysts noted that tech employment in the US grew by 1.2% in 2023, with the workforce increasing by 117,000 to reach 9.6 million, including non-technical employees. CompTIA forecasts a 3.1% increase, equivalent to over 300,000 net new jobs, in the US tech workforce for the 2024 calendar year.
As companies optimize their bench strength and utilization levels approach the six-year average (although still below the peak of 2022), HDFC Securities anticipates that hiring in the tech sector will resume within a couple of quarters, with growth continuing to be volume-led.
Promising Prospects for Indian IT Companies
The recent rebound in tech hiring in the US brings promising prospects for Indian IT companies operating in the American market. With their substantial presence and expertise, these companies are well-positioned to benefit from the recovering demand and contribute to the growth of the US tech industry.
HDFC Securities stated, "The last few quarters have seen a sequential dip in headcount, which could reverse in the second half of the 2025 fiscal year. The upcoming Q4 results will reflect the growth divergence within companies, and we expect growth to bottom out and recover gradually in FY25."
