The Hindu Business Line : `Salaries fast outpacing job skills'

With the second wave of tech outsourcing emerging, human resources in the category of two to five years, who constitute a majority of the workforce, have taken the centre stage.

Hyderabad , Oct.17

GROWING attrition rates, salary profile fast outpacing the experience and rise in the cases of false experience claims are on the increase in the Indian IT market.

With the second wave of tech outsourcing emerging, human resources in the category of two to five years, who constitute a majority of the workforce, have taken the centre stage.

The Chief Executive Officer of iGate Global Services, Mr Phaneesh Murthy, said "The sooner we address these issues as an industry the better. Leave alone individual companies, even the industry would be faced with this challenge as it would be difficult to sustain business given such levels of attrition."

Mr Murthy, who was here to announce the company expansion plans, said lately youngsters are focussed on increasing their salaries rather than building technology careers. "This has presented us with a piquant situation, where, in less than five years, they earn more than what they can actually deliver. As a result, their salaries outpace their work capabilities. What next for them? They will find it difficult to sustain this tempo."

Given the Nasscom-McKinsey projections for technology sector growth, a potential mismatch in the demand-supply scenario is likely. This would be a cause for concern. On the demand side, the business looked pretty robust and could possibly grow from 7-8 per cent of the offshoring pie to about 20 per cent, but from the supply side, there was potential for significant challenges, he said.

Referring to the high attrition levels in the tech sector, Mr Murthy said, "Call centres, for instance, are witness to about 60 to 70 per cent attrition levels. If this trend continues, very few organisations can actually survive. We used to hear such levels in McDonald's, where people would work for a few months and move over."

"Given the need for trained resources, companies are often overlooking bloated and false resumes. This would have to change. For instance, we have enlisted the services of an independent company to do some background work. We have realised that more than 6-8 per cent, across locations, bloat up experience. Yet another reason companies initiate a thorough check is that clients insist on their background before taking up projects, he said.

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