A downturn in the United States economy could prove advantageous for Indian technology firms in the long run, according to Hitesh Oberoi, Managing Director and CEO of Info Edge. He stated on Monday that historically, during US recessions, there is a temporary slowdown in hiring, but eventually, an increasing amount of work is outsourced to India. Oberoi anticipates a potential brief dip in hiring for a quarter or two if this trend persists, but he believes it will ultimately benefit Indian companies as US firms seek cost-cutting measures.
Oberoi highlighted that tech or digital hiring constitutes nearly 50 percent of Info Edge’s revenue, marking an increase from the previous 40-45 percent. He identified Bengaluru, Chennai, and Hyderabad as primary markets for tech hiring, followed by certain areas in Gurugram and Noida. The CEO attributed the growth in these geographies and the tech segment to the global acceleration of digitization over the past eight quarters.
Discussing the company’s performance, Oberoi mentioned that the April to June quarter was better than the preceding one, but the outlook for Q3 and Q4 remains uncertain. He emphasized the significance of global economic conditions, especially those in the US, for the IT market, noting its role as an indicator of both local and worldwide economic trends.
Despite a slight settling in the industry, Oberoi acknowledged the ongoing challenges in hiring skilled professionals. He observed a trend of increased selectiveness among job seekers and a somewhat slowed startup scene. However, he expressed optimism about the abundant opportunities in the market for individuals possessing the right skills.