"Tier 1 and Tier 2 companies hired in large numbers in 2011. Hence there is sufficient resource in most companies. This could result in a slowdown in hiring. We expect lateral hiring too to be moderate in 2012 and this might result in unemployment among the middle level staff", said Srinivas Kandula, Global Head of HR at iGate Corporation. It also expects a decline in attrition rates. “Attrition rates will decline in the coming year. iGate expects it to be anywhere between 16 and 20 percent in 2012, compared to 21 percent in 2011”, Kandula says.

Whereas MindTree says that there is a ‘cautious optimism’ in the industry and expects attrition levels to decline to 12 percent in the coming months against 18 percent in the previous quarter. The company which has made around 3,000 campus offers this year expects the numbers to be the same or slightly go up in the coming year.

“While there is no negativity within the IT industry, macroeconomic pressure from the Eurozone and North America and inflationary trends in India could play crucial role in deciding next year’s salary hikes and hiring statistics”, says Babuji Abraham, Global Head of people function at MindTree. “Companies are cautious about this future. This year’s Christmas sales in the U.S. might give us a better picture about the coming year; it is going to reflect the consumer confidence in North America”, he added.

Consultancy firm, Mercer expects wage hikes to be moderate in the coming year. The Mercers Compensation Planning 2012 reports says that pay levels in Indian companies will see a lower double-digit increase in 2012 due to both inflation and talent shortages.