The top 4 IT service providers in India have collectively added lower than 2,000 employees within the third quarter of FY23, according to Times of India.

The hiring slowdown development started within the second quarter when the 4 firms added 28,836 employees, which was about half of what they had added within the first quarter.

However, Q3 took an even more drastic turn, as hiring sank to levels last seen during the 2008-2009 financial crisis, a reflection of the recent turbulent global economy global and economic uncertainty.

Indian IT service companies, Tata Consultancy Services (TCS) and Wipro Limited each experienced a decline in their total headcount. TCS dropped by 2,197, and Wipro’s headcount declined by 435. Infosys’s headcount grew by about 1,600, and HCL’s by 2,945.

Analysts have said the sharp drop in hiring is a correction of the over-hiring in the past, which was fueled by increased demand for digital roles post-pandemic. Also, the high attrition because talents are going to startups and global tech firms. Now, both factors are moderating.