According to Xpheno, a specialist staffing firm, the Indian IT sector is likely to see a shortfall of over 1.15 million in this fiscal.
Attrition in a company refers to employees who leave voluntarily. “With an average attrition of 23% on a talent base of 5 million, the tech sector will see over 1 million talent movements this year,” said Kamal Karanth, Co-Founder, Xpheno.
“The hiring action around attrition, combined with expansion hiring for years, has set the pace for the talent movement,” he said. Interestingly, the sector as a whole has not changed in the last four years, but its status has shifted from ‘highly involuntary’ to ‘highly voluntary’ a year ago, industry experts said.
The tech industry, for example, saw an overall (uncharacteristically) range of 21.3% to 22% over the past three years, due to a slowing market. According to him, attrition (voluntary) is estimated to be in the range of 22% to 23% in FY12, driven by the overall boom in the job market and recovery of economic activity.
“While the attrition rate for FY20 and FY21 and the expected attrition level for FY22 are largely the same. The difference is the change from involuntary attrition to voluntary attrition. The onset of the pandemic triggered a wave of involuntary crash with enterprises abandoning benches and cutting flab in response to the market lockdown,” explained Mr.
The Work From Home (WFH) regime has also made it easier for technical professionals to find jobs. BS Murthy, CEO of Tech Hiring and Advisory Leadership Capital, said it has become extremely easy for job seekers to explore multiple career possibilities outside of an existing employer, as every part of the recruitment process is in the pandemic-triggered work-from-home economy. going virtual. Strong.
“Today, technocrats are able to connect with 10 or 15 potential employers simultaneously, compared to 2 or 3 firms in pre-pandemic times. They conduct multiple job interviews sitting at home, complete the recruitment process and submit offer letters. The new work culture is a real boon to most of the talents in terms of job search convenience.”
According to TeamLease Digital, the demand for skilled talent in the tech industry has increased by 40 to 50% and this in turn is leading to a talent war.
“Some enterprises are trying to retain talent by increasing salaries and perks, while others are partnering with staffing firms,” said Shiv Prasad Nanduri, vice president and business head, IT and staffing, TeamLease Digital.
Accidents in the IT landscape
Currently, funded technology start-ups are seeing the highest level of attrition at 30%, while IT product firms are seeing only half. As per data from Xpheno, domestic IT service providers and large consulting firms are witnessing a reduction of 25%, while GICs/captives and non-IT enterprises are reporting overall technical talent of 20%.
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