The Naukri Jobspeak IT index has seen a sequential decline for the 2nd month in a row in November. This can be read as an indication that the supply side pressures for the IT industry are moderating. Subsequently, this might also mean that the attrition levels should decline going forward.
The index is down 26.4 percent from its peak in September earlier this year and is now at its seven month low. The index shows that the November reading is down 11.3 percent and was down 17 percent in October.
As economic activity returns to normal after nearly two years of duress courtesy of the COVID-19 pandemic, the job market in India has overall posted annual growth of 26 percent in the month of November.
The continuous growth of the IT software and BFSI sectors have enabled metro cities to outperform their tier 2 counterparts in the annual growth charts, the report further said.
IT companies like Tech Mahindra had told CNBC-TV18 after the third-quarter results that they expect attrition levels to start coming down now.
The IT services sector in India will see an addition of nearly 4.5 lakh jobs in the second half of this financial year, said a recent report.
The IT index in the past month has fallen 3.5 percent but is still up 11.2 percent in the past six.