UnearthInsight, a metrics benchmarking and market intelligence firm, unveiled in its report on “IT Industry Q2 Insights & FY22 Forecast” significant data points on hiring, attrition, and technology evolution of India’s IT Industry. This is in light of the lifting of restrictions owing to the pandemic and the steady opening of workplaces.
The key hiring trend this report estimates is a gross employee addition of 450,000 in the IT Services Sector in H2FY22. But owing to the higher attrition rate of 17 to 19% in this quarter, the net employee addition is expected to be 175,000. Freshers are expected to take up a larger portion of this hiring as compared to last year with the following metrics predicted for the top 5 companies:
- 77,000 freshers for TCS (43,000 hired in H1FY21 + 34,000 in H2FY22)
- 45000 freshers for Cognizant (revised earlier target of 38,00)
- 45,000 freshers for Infosys (Revised earlier target of 35,000)
- 15,000 freshers for Tech Mahindra
- 22,000 freshers for HCL (30,000 for FY23)
It is expected that the fresher addition across the next two quarters will help IT industries control the overall attrition and bring it down to 16% to 18% in FY23.
Commenting on the Insights, Gaurav Vasu, Founder and CEO UnearthInsight said “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 is 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 programs in completely digital format and have developed robust infrastructure to support such initiatives. On the hiring side, the industry is expected to see a sharp momentum with the addition of around 12% more employees than H1 in the second half of the year.”
UnearthInsight also estimates $80 billion to $100 billion in Cloud services revenue for the IT services industry by 2030. HCL even expects to hire 10,000 people to its AWS practice called Amazon Web Services (AWS) Business Unit.
On the Software Product and Platform Business side, it is estimated $15 billion to $20 billion revenues by 2030 for Top Tier IT services firms, both public and private. TCS, Infosys and HCL will continue to expand in US, Southeast Asia and India while Algonomy (Earlier Manthan), 3i, Persistent, Ramco, Financial Technology, Decimal Technologies and many private Tier II and Tier III firms are expected to generate a larger percentage of revenues from products and platforms in global markets like US, UK, UAE, Singapore, Africa markets.
With the expected rise in attrition and hiring along with an increased emphasis on digital transformation and market expansion, it remains to be seen how the IT Sector will take advantage of the opportunities H2FY22 presents to successfully bring down attrition rates in FY23 and drive organisational growth.