Reduced IT services hiring observed in the previous 6-7 quarters; no signs of demand increase anticipated in Q2, according to Quess Corp.
Quess Corp Reports Strong Performance in Technology Staffing Amid Flat IT Services Sector
In a surprising turn of events, while the IT services sector remains stagnant with no recovery expected in Q2 2025, the demand for technology talent is on the rise, particularly from global capability centres (GCCs) and non-IT companies.
According to Quess Corp ED and CEO Guruprasad Srinivasan, this shift in demand is evident in skills related to AI, cloud computing, and cybersecurity, which account for 73% of staffing demand for technology roles at the company. The average wage for these specialists stands at around Rs 1.25 lakhs, with margins of 15-18%.
Quess Corp, a leading staffing and recruiting firm, posted its best quarterly performance in over 15 years in the professional staffing segment. The segment reported a revenue of ₹244 crore and a double-digit margin of 10.2%, marking a significant improvement from the year-ago period.
The company added 2,000 net new hires in the same quarter, with a recovery in the later part of the quarter by adding 6,500 numbers in June. This growth was driven by the demand from sectors like manufacturing, banking, financial services, consumer retail, and telecom consumer.
The growth in the professional staffing segment was instrumental in driving the increase in consolidated profit after tax for Quess Corp, which posted a 4% increase at ₹51 crore compared to ₹49 crore in the year-ago period.
However, the general staffing and overseas business of Quess Corp remained almost flat year-over-year. The digital platform business revenue also declined by more than half year-over-year.
Despite the mixed performance, Quess Corp continues to be a key player in the staffing industry, with a significant exposure to the GCC market, which stands at 73%. The company has 12 new contracts in the pipeline, each with a promising projection of headcount growth in upcoming quarters.
The company's open mandates currently stand at over 1,200 positions, indicating a continuous demand for staffing solutions. The shift in demand from traditional IT services firms towards non-IT sectors and GCCs is a notable trend in the technology staffing industry, signalling a recalibration rather than a collapse in hiring.
In conclusion, while the IT services sector is experiencing a sluggish trend, the demand for technology talent is on the rise, particularly from non-traditional tech employers and global capability centres. Staffing firms like Quess Corp are playing a crucial role in meeting this demand, especially for niche and high-skill roles.
- The increase in demand for technology talent, including AI, cloud computing, and cybersecurity specialists, is unexpectedly moving the IT services sector, which shows no signs of recovery in Q2 2025.
- Quess Corp, a major player in the staffing and recruiting sector, experienced its best quarterly performance in over 15 years in the professional staffing segment, with a revenue of ₹244 crore and a double-digit margin of 10.2%.
- staffing firms are capitalizing on this demographic shift in demand, particularly from non-IT companies and global capability centres (GCCs), as evidenced by Quess Corp's growth in the professional staffing segment.
- The growth in Quess Corp's professional staffing segment was instrumental in driving the increase in consolidated profit after tax for the company, which posted a 4% increase at ₹51 crore compared to ₹49 crore in the year-ago period.
- The company's digital platform business, however, saw a decline in revenue by more than half year-over-year, while the general staffing and overseas business of Quess Corp remained almost flat year-over-year.
- Despite the mixed performance, Quess Corp maintains a strong presence in the staffing industry, with 12 new contracts in the pipeline and over 1,200 open mandates, indicating a persistent demand for staffing solutions.
