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mass recruitment

Days of Mass Recruitments are over!

Gone are the days when on Day 1 mass recruiters used to visit colleges and hire bucket full of engineerings graduates. Even the students used to be sure that with the least amount of effort they would be able to get into an IT MNC. It was not long ago when some of the premium universities used to allure engineerings aspirants by showcasing a massive placement figures of day 1. Thanks to these Mass Recruiting IT companies, that all these universities were able to induct thousands of engineering aspirants and provide them placements too. 

Like everything else this fairytale also have an end, which we have started observing in the past few months, where as there has been a drastic reduction in terms of hiring by these companies. So question arises that what has transpired an end to this fairytale? Let us dig it down to analyse point by point causes and implications.    


Change of role for the IT industry: IT service industry were predominantly known for making custom softwares as per the demands of customers which gradually has changed to being a partner of customers for providing cost effective solutions for present and future problems. The concepts like design thinking, predictive analytics are new buzzwords in the IT industry.

Implication: Focus on finding problem solvers and out of the box thinkers.    



Intense Competition from Startup culture: There was a time when big companies used to dominate the market in their terms and conditions but with surge of IT startup companies and disruptive forces established players finding it difficult to manage customers at higher price points as customers have alternative solutions, which is resulting in low operating margins and making it difficult to sustain un-utilised workforce. These startup companies are forcing the big players to change the way business in done and shift the focus from traditional methods to new and innovative ways.

Implication: difficult to predict market requirements and equally difficult to predict hiring numbers in advance.    


Seamless Connectivity: We are witnessing an era of digital revolution where knowledge is freely available for everyone which is making customers knowledgeable and demanding too. Before spending even a single penny customers prefer to make an informed decision by taking reviews, feedbacks and comparison of price and services. Which is making it all the more difficult for companies to charge a premium for services.

Implication: Knowledgeable customers demand for knowledgeable resources for execution of projects which means they want to pay less for more.       


Short Project Life Cycle: Due to the emergence of concepts of re-engineering, development of software has become as easy as plug and play devices. Predefined modules and functionality are available to companies to fix it as per the needs of customers this concept saves time, money and resources for customers and reduce the project life cycle. Whereas customers are having winning edge in this model but companies constantly need trained resources who are ready to deliver from day one. This has brought a new concept of experienced freshers. Now companies cannot afford to take three to six months for making a resource ready for a project as may be by that time two of that kind of projects would be finished.     

Implication: Requirements of trained resources than trainable resources. 


Just in Time Hiring:  Couple of major events across the globe like presidential elections in the USA, EuroZone Crisis, Brexit have brought political and economical instability in the market as major policy reforms in these countries will decide the future of the IT industry. Policies like stringent VISA norms, Promotion of local hiring is going to make hiring all the more difficult for companies. A normal trend for hiring had been forecasting the growth of companies and predict the resource requirement and hiring well in advance. Now with changing scenario companies might not be able to predict the growth and take the risk of hiring in advance.

Implication: Hiring process would be just in time i.e. delay in recruitment seasons for Universities.      


Automation: A simple yet powerful word in global economy today, this concept came in existence for making life easier for end users by automating the repeated task performed by humans through machines. This process has reduced the cost for the customers and helped them in streamlining their processes at the same time reduced the requirement of human capital.

Implication: Substantial reduction in human resource requirements.




Companies are bracing themselves well in advance for the impact which is inevitable due to disruptive market forces, but universities and students are you ready?