As pandemic restrictions get lifted and workplaces open, the Indian information technology (IT) industry is on a hiring spree, looking to achieve a gross employee addition of around 4.50 lakh people in the second half of this financial year.
With expected higher attrition in the second (H2) half of around 17 to 19 per cent, the industry is likely to have a net employee addition of around 1.75 lakh people in H2FY2022, revealed a report — titled “IT Industry Q2 Insights & FY22 Forecast” — by UnearthInsight, a metrics benchmarking and market intelligence firm on Tuesday.
War on talent
“Our H2FY22 report unveils insightful findings, and it further brings out the fact that the IT industry’s perceived “War on Talent” is real and it’s getting intense with attrition a rising concern for the industry. It’s crucial for the industry to focus on employee value proposition (EVP) even more aggressively to keep attrition in check. Also, one of the highlights of H1 is the way top IT firms have delivered upskilling programmes in a completely digital format and have developed robust infrastructure to support such initiatives,” Gaurav Vasu, Founder and CEO UnearthInsight said.
On the hiring side, the industry is expected to see a sharp momentum with addition of around 12 per cent more employees than first half in the second half of the year, he said.
The report highlighted that nearly 2.50 lakh freshers have been added so far in in this financial year by 30+ IT Services firms (both domestic and multinational firms in India). The top five companies including Tata Consultancy Services (TCS), Infosys, Cognizant, HCL Technologies and Tech Mahindra are expected to hire more than two-lakh freshers.
Focus on upskilling
The Indian technology firms are majorly focusing on upskilling programmes both in India and global markets, it said adding that TCS leverages multiple learning tools on iON learning platform and initiatives for reskilling its global workforce. Similarly, 90 per cent of Infosys employees learn through LEX, a platform that helps them reskill and upskill to meet the evolving requirements of the organisations.
Going forward, UnearthInsight also estimated that $80 billion to $100 billion in cloud services revenue for IT services industry by 2030. Cloud itself is coming up with newer tools, opportunities, ways of connecting and methods of building algorithms, it added.
On software product and platform business side, it estimated $15 billion to $20 billion revenue by 2030 top tier IT services firms (public and private). TCS, Infosys and HCL will continue to expand in the US, Southeast Asia and India while likes of 3i, Persistent, Ramco, Financial Technology, Decimal Technologies and many private Tier-II and III firms are expected to generate larger percentages of revenue from products/platforms in global markets like the US, UK, UAE, Singapore, Africa markets, it added.