According to an ET report, India’s Tech and IT Industry is expected to raise salaries or counter offers by 60-120% next year to attract and retain talent with niche technology skills.
The report also added that the Indian IT services sector continues to embolden its hiring plans for the New Year, as companies across industries adopt new digital modes of running businesses after the pandemic. The demand for new-age tech talent will increase further in 2022.
Commenting on the massive hiring in IT Industry and attrition Dheeraj Jain, Director- ReGraduate said on Linkedin, “The problem with Tech hiring is that everyone wants to hire the same Top 5% talent, while the majority of 95% IT employees continue to be grossly underpaid due to absolute lack of quality training and skills”
“The quality of education that engineering colleges are providing is simply outdated and useless even for the jobs of yesterday, leave alone for the jobs of tomorrow” he added.
Dheeraj further said, “While we may boast of a large number of engineers, there’s hardly any talent or training in the graduates we are churning. If IT companies and startups actually want Tech talent, the only way to get it is to lobby with the government for a complete overhaul of engineering curriculum and training in all colleges including IITs and NITs,”
“Else, it’s just 5-10% of the people who will be able to self-learn on the internet. The majority needs an education ecosystem for IT education that we simply never talk about.” he added.
Recruitment consultancy firm Xpheno said, “People in high demand include full-stack engineers, data scientists, data engineers, and backend engineers. The war of wages put the negotiating power back into the candidate’s hands,”
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“Talent with niche digital skill sets in demand across enterprises saw a sharp rise in valuation and resultant remuneration changes,” said Kamal Karanth, co-founder of Xpheno.
“This demand is likely to persist into 2022, till enterprises create an organic talent pool and upskill workers, which would typically take six-eight quarters, he added.
Responding to why is the war for talent intensifying, Amit Patel, Head of Engineering said on Linkedin that there are two reasons this Talent War is happening in the IT Industry.”
- The first is because of cloud adoption. More companies & industries are wanting to move to the cloud or a hybrid model after the pandemic. As per one report by Nascom, the deficit of talent with Cloud Skills is increasing with the increase in demand.
- The second is because of the phenomenon called great resignation One study by Microsoft says that 41% of people across industries want to quit their job. This is also impacting the IT industry. More and more people are questioning the reason to remain at their jobs.
“These two things combined have started this Talent War 2021. Also, it is not going to be easy for companies to hire & retain good talent. Because attrition in the IT Industry is growing really fast.” he added.
Amit further said, “Every leader in the IT industry will have to do some deep thinking that will help to set the vision for the future and define strategies that can help companies to mitigate the risk from this war of talent.”
