Tech Hiring Boom in the US Benefits Indian Companies
In March 2024, the technology sector in the US hired at record levels in software and cloud infrastructure, offering huge opportunities for Indian IT companies. We take a detailed look at this resurgence, new job openings in the sector and how Indian companies are increasing their presence in the American market.
In March 2024, hiring in the US tech sector in areas such as software development, technology services, and cloud infrastructure increased dramatically. For the first time since August 2023, tech job openings reached 191,000 new entries, showing that the dynamics in the sector are changing rapidly. This was a clear indication of the US economy’s dependence on technology and the sector’s capacity for growth.
Indian IT Companies Capitalize on Opportunities in the US
Indian IT companies with a strong presence in the US are benefiting significantly from this new wave of hiring. Companies such as TCS, Infosys, HCL Tech, Wipro and LTIMindtree have increased their footprint in the US technology market, creating a total of approximately 135,500 jobs. These companies represent around 2% of the US technology industry and their broad-based presence in the US is contributing significantly to the recovery in demand.
Job Vacancy Growth and City Breakdown
As of March, there are 438,000 active IT job openings in the US. Demand for software developers and IT support specialists is especially high. Among the cities with the highest number of job openings are New York, Washington, Dallas, Chicago, Los Angeles, San Francisco, and Los Angeles.
Future Prospects and Employment Forecasts
According to analysis by HDFC Securities and CompTIA, technology employment in the US will grow by 1.2% to 9.6 million jobs in 2023. For 2024, the IT workforce is projected to grow by 3.1%, representing over 300,000 new job opportunities. Hiring in the sector is expected to approach six-year averages over the next few quarters, optimizing the bench strength.
Likelihood of Industry Revival
Although hiring in the tech sector is down from its 2022 peak, the headcount decline observed in recent quarters is likely to reverse in the second half of FY2025, followed by a gradual recovery. Going forward, growth differentials between companies are expected to become clearer and the technology sector is expected to make a solid recovery.
The US recovery will open new doors for Indian technology companies and will continue to shape competition in the global technology market. Increasing job opportunities in tech hubs will mean new horizons for professionals and will require companies to make significant changes in their strategies.
