The January-March quarter allegedly saw roughly 6% of contract employees lose their employment due to layoffs in the information technology industry.
A Reuters story said that the Indian Staffing Federation (ISF) estimated that 3,600 outsourced contract employees have lost their employment as a result of the slowdown in the industry brought on by the Russia-Ukraine conflict.
ISF is a group of 120 employment agencies that gave the companies 60,000 contract outsourced employees.
The Russia-Ukraine conflict, which has affected European customers' spending, and the downturn in the global economy brought on by a post-pandemic shift have both had an influence on the employment of professionals in the IT industry.
By the end of March 2022, the IT industry would reportedly employ roughly 5.1 million people, according to the research. Since then, hundreds of contract employees have been sacked by IT companies, and recruiting has stalled.
Despite a slowdown in job creation in the IT industry, ISF President Lohit Bhatia told Reuters that hiring activity remained high in the industrial, retail, and logistic sectors because of strong domestic consumer demand.
He furthered that the decline in recruiting throughout the globe in the IT industry matches the downturn in the IT flex staffing sector.
According to Reuters, JPMorgan analysts have previously expressed concern that rising inflation, supply-chain problems, and the effects of the Russia-Ukraine conflict might put a stop to the pandemic-related expansion of the Indian IT services business.
According to a study from the Centre for Monitoring Indian Economy (CMIE), which was cited by Reuters, India's jobless rate increased from 7.8% in March to 8.1% in April.