[Representational Image]Reuters

NASSCOM has hinted at a gloomy outlook on hiring for the current fiscal since the IT majors show a shift towards automation.

"Hiring activity in the year before last was 2.20 lakh (new jobs were created in IT sector). Last year, (FY 2015-16) there were about two lakh additions. This financial year, we are expecting it to be on the lower side of that," R. Chandrashekhar, president, NASSCOM, told PTI.

While he refused to put a number to hiring figures for the fiscal, Chandrashekhar explained that recruitment is gradually slowing down as IT companies are focusing on revamping internal process, bettering productivity of existing employees and automation.

Meanwhile, Tata Consultancy Services (TCS) and Infosys deviated from the hiring trend revealed by NASSCOM during the April-June 2016 quarter. TCS reported a net addition of 8,236 employees for the quarter as the total attrition rate fell for the third consecutive quarter to 13.6 percent. The company also had the highest headcount of 3.6 lakh employees at the end of June 30, 2016 quarter.

Infosys net addition stood at 3,006 for the June 30, 2016 quarter, up 78 percent over the previous quarter, while the company had 1.96 lakh employees. However, the IT major also saw a jump in attrition to 21 percent during the last quarter.

NASSCOM had earlier predicted about 15-20 percent layoffs due to automation. It also noted the need to re-skill 60-70 percent of the workforce in the IT sector because of a shift towards digital technology. 

The summit named TCS, Cognizant Technologies Solutions India, Infosys, Wipro and HCL Technologies among the top 5 employers in the IT sector.