India’s second largest software exporter Infosys Ltd is offering paid internship to campus hires before taking them on rolls, a move that that would impact new jobs across the IT sector when hiring by technology services companies is already at a ten-year low.
The Indian technology services sector is facing its worst growth period in close to a decade as they see clients reducing budgets on traditional outsourcing work, which is not being offset by growth in newer areas such as digital and cloud. In addition, routine maintenance work of customer applications or IT infrastructure, where freshers are normally deployed have been taken over by automation or robots.
With use of automation, these companies are shifting their employees from projects, where their jobs have become redundant and training them on skills to match new requirements. Infosys and its cross town rival Wipro shifted more than 8000 employees from projects to other roles due to automation during the first half of this fiscal.