Recruitment rate in India is on an upsurge and so is attrition rate. What does this tell us?
- Leading tech giants of India record highest attrition rate since pandemic outbreak.
- Cognizant reports highest-ever attrition rate in Mar-June quarter.
- Experts predict further increase in the trend for the year 2021.
- Organizations are changing their business model and it’s a good news for job seekers.
India is once again racing back on the track of recovery in the job markets. And as the country swifts into the post-pandemic phase, the attrition rate in the IT sector reaches an all-time high. Leading corporations like Wipro, Infosys, Cognizant, etc. have registered a drastic upsurge in the attrition rate since the same quarter of the last year. This comes along with the upward graph of recruitment rate in India. The combination of the high recruitment and attrition rate in the market suggests that demand for talent acquisition has once again hit the doors of the IT industry.
Beginning with Accenture, the company reported a straight 17% increase in its attrition rate in Q3. Last year in the same quarter, the rate stood at 11%.
Cognizant, on the other hand, recorded the highest-ever attrition rate for the Jan-March quarter at 21%. Infosys reported a 15.2% attrition rate for the Jan-March quarter while Wipro recorded 12.1% in the fourth quarter.
The story doesn’t end here. According to the experts, the attrition rate for the year 2021 might hit the mark of 22-23% for the IT sector. This accounts for forecasted 4.6 million resignations to be filed by IT employees soon.
The increasing attrition rate for the IT giants is the indicator of returning of competition in the market. During the COVID-19 led pandemic, small businesses almost halted their recruitments, leading to stagnation in the employment trend in the IT sector.
What is driving the high attrition trend?
As stated above, the answer is increasing competition in the market. According to the CEO of Infosys, Pravin Rao, a high attrition rate is the sign of a strong demand environment. During the pandemic, there was a huge transition of the business model of the IT companies that diverted the major attention to user data and transactions.
This led to a dramatic increase in the skills like data science, machine learning, artificial intelligence, cloud engineering, cybersecurity, data automation, etc.
Co-founder of Xpheno, Kamal Kamath said in a conversation with Economic Times, “the job market would be buoyant for talent fuelled by the organic growth, increased IT spend and inflow of large-scale projects.”
According to reports, the IT sector has recorded as much as 35% growth in recruitment for the above-mentioned skills.
With pandemic phasing out gradually, startups and small tech companies are returning in the market in full swing, willing to hire the best of the talent for competitive advantage. Lucrative salary packages and opening of market has thus led to high attrition rate among tech giants.
In June 2021, India recorded a noteworthy 47.1% upsurge in the data science jobs as compared to the same time frame last year. Similar trend was witnessed in the popularity of A.I. Artificial Intelligence is now increasingly becoming an integral field in India, with 94% of organizations striving to adopt the technology.