High Attrition Rate continues to be bane for IT companies in 2021
This is a phenomenon that is afflicting the IT industry, which is seeing heightened attrition, inflated wages, and dropout rates as talent tries to make the most of a favorable situation.
It has come to light that Indian IT companies are likely to experience higher attrition rates in the context of increasing demand for talent this year, according to a report, as they strive to accomplish large outsourcing orders and multinationals transition more work to captive divisions.
According to HAN Digital’s analysis, the data from 100 companies between January and March, one million workers could resign this year, resulting in higher hiring costs for IT services and BPM firms. During the Covid-19 pandemic-induced downturn in 2020, the tech services sector saw a 12% attrition rate. However, by the end of 2021, the IT-BPM market is expected to experience a 22% attrition rate. According to the report, HR leaders’ at large companies and contract staffing consultants believe the trend will continue until the end of the year.
This is a phenomenon that is afflicting the tech industry, which is seeing heightened attrition, inflated wages, and dropout rates as talent tries to make the most of a favorable situation. According to industry estimates, this could continue for another couple of years.
What is the cause of this?
There are many explanations for this. For one thing, businesses had to invest in technology to maintain business sustainability in the aftermath of the pandemic. Businesses in a variety of industries have intensified their digital transformation efforts, including cloud migration and enhanced customer interfaces. The second factor is the unmet demand. Businesses that had halted their technology expenditure are now investing again as the economy recovers.
The integration of these two factors has culminated in a surge in talent demand, or, as some executives put it, a “battle for skills.”
As global companies look to change their technology infrastructure to allow remote access to systems, India’s tech sector has seen a huge revival, both within the country and from international companies. Companies all over the world are converting legacy code to new software and relocating their data centers to the cloud. They also want to expand their company by optimizing business processes based on transactions and user information. As a result, there is an increasing demand for qualified professionals to work on these ventures.
According to AeoLogic, India, as compared to other western countries, in the past has been considered as slow when it comes to IT and ITES development but with the Government now taking stringent steps to fast forward the implementation of new technologies. Joining hands with the Indian Government, AeoLogic, is now one of the most chief companies in the country that works to strategize, implement and execute the next generation tech like Artificial Intelligence, Smart Cities, Blockchain, Internet of Things, and more.