IT-BPM: Struggling with high attrition and a war for talent, the IT services and business process management (IT-BPM) industry is expected to hire 375,000 technicians to reach a workforce of 4.85 million in fiscal 2022. A report by industry recruiting expert TeamLease found that the IT industry is on a positive hiring trajectory and will reach 10 million employees by 2026-2027 (5 years).
Here’s what TeamLease’s Digital Job Outlook report found:
- 3.75 Lakh new jobs
The IT-BPM industry is expected to hire 3.75 Lakh technicians to reach a workforce of 4.85 million in the fiscal year 2022. This sector will have a workforce of 10 million in the next 5 years. - Global Growth in Recruitments
While full-time employment will grow by 17%, contract staff will benefit more from the positivity of the market. - Higher Contractual Hiring
Contract IT headcount will increase by 19% and is expected to reach 148,000 employees by March 2022. The increase in IT-BPM hires has been driven by increased industry investment and the adoption of rapid technology by the business. - The Great Resignation
In FY 22, the attrition of full-time employment is expected to increase from 13% to 24%, and the attrition of contract staff is expected to reach 49%. - Most In-Demand Skills
The exponential demand for digital skills will see the supply gap widen. The gap between supply and demand is widening for skills in data engineering, data science, machine learning, and artificial intelligence. 70 to 75% of companies opt for an increase in skills with or without certification due to the lack of skills.
To address the talent gap, organizations can consider three strategies: Build, Buy, and Borrow.
Build: hire newcomers and strengthen their resources through on-the-job training and development.
Buy: Lateral rental
Borrow: contractual hiring (hiring experienced technicians on a contractual basis to meet an urgent need)
“The Indian IT-BPM industry is on the cusp of unprecedented growth. Besides being the largest private-sector employer (around 4.47 million employees), the IT-BPM industry is transforming India into a hub for digital skills. 43% of our customers expect to increase digital skills hiring by at least 30% or more this year, however, what is concerning is the gap between supply and demand. To close the talent gap, organizations will need to review their HR strategies, ”said Sunil C, Head-Specialized Staffing, TeamLease Digital.
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