The professional services industry doubled its headcount between January and May this year as compared to the same period last year, data released by staffing firm Quess Corp on Tuesday showed. It hired the maximum number of people in India during the period.
In the industry, the demand was the highest in areas like taxation, business consulting, risk advisory, deal advisory, technology services, and environmental, social, and corporate governance (ESG) services.
According to the employment trends insights announced, based on payroll distribution data of Quess Corp's subsidiary Allsec Technologies Ltd, there was a 12 per cent uptick in hiring in India during the period.
"This is largely due to improvement in the country’s financial and investment cycle," the company said.
The industry is followed by the manufacturing sector which exhibited nearly a 50 per cent increase in headcount. This is due to the companies experiencing a "strong uptick in sales for Indian products, both locally as well as internationally".
After these two sectors, the banking, financial services, and insurance (BFSI) and e-commerce sectors showed the highest increase in headcount of 16 per cent each.
The BFSI sector, according to Quess Corp, has remained steady due to Indian banks holding their ground amidst challenges faced by banks worldwide. This is due to factors such as strong domestic demand, enhanced credit conditions for borrowers, and strengthened solvency and funding.
The growth in the e-commerce sector has been attributed to the widespread adoption of smartphones, increasing internet penetration, and growing access to digital payment systems and the Centre's push towards digital transactions have all boosted this growth.
At nine per cent, the IT/ITes sector is also among the top five sectors which witnessed headcount growth between January and May.
This growth, however, is muted when compared to the same period last year. According to the company, it "reflects the industry's sentiment of treading carefully amidst an uncertain economic scenario and global challenges such as inflation, recessionary concerns and geopolitical events impacting the global markets".
"Over the past few months, we have seen companies tightening their belts but India’s hiring prospects have improved from the past year. Moreover, several global bodies have affirmed that India will maintain its position as the fastest-growing economy in the world. The increase in headcount growth proves that Indian businesses are holding steady and looking to tide the global economic storm. We anticipate that India's continued investment in crucial sectors like energy and infrastructure will catalyze employment growth in the years ahead," said Naozer Dalal, chief executive officer (CEO), Allsec Technologies.