The trend kicked off a few months ago with some of the big tech companies seeking to rationalise their workforce, they said.
Venture capitalists, recruitment services and executive search firms told ET that lower pay packets are becoming the new normal after the pandemic-induced hiring frenzy during 2021-22. Most of the hiring is currently being done by early-stage startups after series A funding, they said.
“These are mostly CXOs and senior tech talent who have been laid off in the last few months and have worked with large technology organisations as well as startups,” said Ratna Gupta, senior partner, ABC Consultants, an executive search and talent advisory firm.
IT professionals are mostly taking a cut on their variables, which account for nearly 30% of the compensation, say experts.
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“A lot of good tech talent is currently in the market at realistic salaries. We are hiring a few such professionals,” said Vikram Gupta, founder of IvyCap Ventures, a $530 million fund that invests through the alumni ecosystems and manages about 40 portfolio companies.
Navnit Singh, MD of India at Korn Ferry, a global executive search firm, said, “A large number of senior tech talent is being picked up by startups.”
Recruitment services firm Michael Page India is currently helping a few startups, including an edtech firm, find suitable professionals for leadership roles in technology. “We are in conversations with candidates who have been laid off and have worked with both big tech companies as well as startups,” said Pranshu Upadhyay, regional director, head of India technology practice, Michael Page. “They are ready to take a cut of up to 30%.”
“IT companies have again started hiring but not like previous years…they are treading cautiously when it comes to picking talent,” said Gupta of ABC Consulting.
Tech hiring is mostly done by startups that are either in seed funding stage or series A stage, said Upadhyay.
