IT firms report flat growth, drop in employee productivity, says HYSEA

KV Kurmanath Hyderabad | Updated on September 22, 2020

Hiring continues during pandemic; to go back to pre-Covid levels next year

What has been the impact of the Covid pandemic on the IT and IT-enabled services? Contrary to the popular perception, the impact has not been as bad as generally perceived.

Most of the companies have seen either flat or single digit growth. But firms see a drop in productivity by up to 10 per cent even as majority of the companies have honoured the job offer letters.

The Hyderabad Software Enterprises Association (HYSEA), which represents an industry that clocks exports of ₹1.20 lakh crore in the last financial year, has come out with a ‘State of Business Report’, throwing light on how the industry is doing after six months of the pandemic.

“Nearly 64 per cent of the companies reported either flat or single digit revenue and profitability growth so far in the financial year 2020-21 over 2019-20. This is an encouraging sign,” the report said.

The report, based on a survey conducted among the HYSEA member-companies, found that there is no unusual attrition on account of the pandemic reported by any company.

Job offers

Nearly 70 per cent of large and very large companies hired freshers in the last six months (anywhere between 1 and 1,000 jobs). Majority of the companies said they would honour the offers already made to freshers.

“About 50 per cent of large and very large companies said their campus hiring in 21-22 will return to pre-pandemic levels. Nearly 60 per cent of large and very large companies said lateral hiring will go on during current financial year,” it said.

Drop in productivity

There, however, has been a drop in productivity. Over 80 per cent of the companies have said employee productivity is over 75 per cent. Almost all large and very large companies have reported productivity of over 90 per cent.

Work from home

Interestingly, over 95 per cent of the companies across the board continue to operate with work from home, with employees showing reluctance to come to offices due to fear of infection.

Published on September 22, 2020

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