According to a TeamLease Digital report, The IT-BPM industry‘s attrition is expected to be high as the previous years.
The report reveals that 20-22 lakh Indian IT professionals are likely to leave jobs by 2025. The new-age firms ramping up their workforce was the chief cause of attrition in the IT services sector in 2021.
Sunil Chemmankotil, Chief Executive Officer, TeamLease Digital said, “The Indian IT sector has witnessed tremendous growth in the last decade. It has recorded 15.5 per cent growth, which is the fastest in more than a decade and touched $227 billion, creating additional 5.5 lakh jobs in FY22 alone.”
“There is evidence of a reverse trend which indicates that retaining a business-critical talent has undergone a great change in the last two years”, he added.
“With the usual demand for salary hikes and other benefits, the main attraction for employees in their new jobs is ‘Great Reflection’ on the internal policies and external factors that should be relooked at by employers as we are viewing great changes in the employees’ feelings about work and life”, Sunil Chemmankoti added.
While employees’ needs and priorities have changed, such as the desire for flexibility, career growth, and employee value proposition, they are re-evaluating their careers based on these aspects and quitting their well-cushioned jobs in the mid-way.
“Organisations’ strategic hiring plans must contain goals towards their employees and their betterment. This ultimately translates into soul searching over whether an employee feels valued in his/her work or merely creates outcomes and value to benefit others,” said the report.
“Tech talent in non-tech companies will see 3X growth in the coming years, opening up approx 1 mn new tech jobs by 2025. This will lead to further shifts of IT talent from traditional companies in the near future,” said Sunil Chemmankotil, CEO of TeamLease Digital.
“IT companies are experiencing dysfunctional turnover where the best employees of companies are voluntarily leaving at higher rates,” the report mentioned.
The alarming figures reveal that the flexible structure has heightened the choice. The covid-19 has also affected the hiring and onboarding process of IT companies.
The report said there is a huge misconception with the sentiment in the candidate market, that a salary increase would improve performance and boost job satisfaction.
According to TeamLease Digital, the industry is expected to grow from 50 lakh to 1 crore people in the next few years, with multiple opportunities for job seekers.
The findings showed that 57 percent of IT professionals would not consider returning to the IT services sector in the future. The reports by TeamLease Digital predicts there will be up to 55 percent growth in contract staffing attrition for FY 2023 as compared to 49 percent in FY 2022, the report said.
Speaking about the attrition rates of IT industries TCS’ attrition rate for the quarter ended June 30 was 19.7 percent, Infosys’ was 28.4 percent, Wipro’s was 23.3 percent, and HCL’s was 23.8 percent.