IT companies have automated a part of their processes.
Credit: DH PHOTO/ PUSHKAR V
In the last one year, it has become almost impossible to find a job, young Bengaluru professionals say. Head hunters and human resource (HR) professionals explain that there are multiple factors contributing to the slowdown, especially in the IT sector.
Online platforms like Reddit and LinkedIn are rife with posts about the struggles of young unemployed professionals. Some have been job hunting for close to a year with no callbacks, while others state that though they have completed the final round of interviews it has not led to an offer.
It’s been over six months since Bhavya R (name changed), a Basavanagudi resident, began applying to other jobs. The long three-hour commute to her current workplace has taken a toll on her health, prompting her to take the decision of finding a job closer to her home. But she has been unsuccessful so far. “I have sent my resume to multiple companies and even made it to the interview round of a few, but it never resulted in an offer,” she shares. For mid-level roles like hers, it is usually referrals and connections that do the trick. “Responding to notices on job platforms, without knowing anyone in the company you are applying to, is like shooting in the dark,” she explains.
AI conundrum
A majority of IT companies have automated a significant percentage of their processes. “And these are mostly jobs requiring 0-3 years of experience. So younger professionals are heavily impacted,” shares Deepak Babu, head of global talent acquisition at a service security startup located on Vittal Mallya Road. About 20% of the processes are carried out through AI now, and that percentage is expected to go up to 50% in the near future, Babu notes. Sectors like HR and finance are also majorly impacted.
With fewer jobs available, the market has become extremely competitive. Interestingly, skilled candidates who are also open to and adept at using AI have an edge over others, he adds. And they continue to be paid well.
Trump influence
Since Donald Trump’s win at the US elections, companies have been very conscious and conservative in their hiring, the director of a consultancy firm headquartered on Old Airport Road points out. “Hiring has been badly hit by Trump’s tariffs and policy changes, like the exorbitant H1B visa fee,” he says. His company provides talent for some of the world’s most recognised MNCs. “It is fairly common now for companies that had initially wanted 10 new employees to come back and tell us to reduce that number to five. Often, they also tell us to stop looking for talent due to a hiring freeze,” he shares.
Earlier, they were recruiting 100-125 new employees per month. Now, the average stands at 50. “I feel it is only going to get worse, with the growth of AI. As we speak, thousands of tools are being tested, which if successful can replace humans,” he adds. AI tools are being trained for payroll processes,
recruitment and a host of other repetitive tasks.
He recalls that about five years ago, during the peak of the startup wave, there were professionals “walking around with 10-12 job offers, ranging in compensation from Rs 15 lakh to Rs 50 lakh”. But that is not the case anymore.
Companies are also cutting down on college hiring. “I have IITs requesting me for campus recruitment. But even they are not making the cut,” says Kevin John (name changed), head of talent acquisition at a cybersecurity firm. IIT graduates who do end up getting hired are not being offered the kind of high-paying packages they once were. AI is disrupting the way things are done in the IT sector, he concludes.