The demand for IT skills has been on a sharp rise this year. COVID pandemic initially caused a brief drop in demand for jobs globally as businesses were struggling to survive under lockdowns. However, many managers made the quick transition to remote solutions and this resulted in a significant rise in the demand for digital skills globally. The demand for IT skills is reported to have grown by 22.5 percent from October 2020 to March 2021 by
In India for instance, there were significantly higher attrition rates announced by most companies in their Q4 results and post earning calls. This means that there is a serious war for IT skill/talent in India. The result is higher perks and bonuses for prospective employees. Randstad India director of staffing Yeshab Giri explains in a post that “…There are so many opportunities on the digital side. Now, everyone is willing to pay big bucks for good IT talent because the demand is huge and supply is less.”
Drop out and attrition rates rise
Drop out rates are also reported to be on the up, by 40-50 percent. “..That is, for every 10 job offers made, 4-5 of them are turning down the offer.” This is only making hiring harder for managers who resort to compete for IT skills using higher offers and bonuses.
Attrition rates are also on the up. Employees leave when there are greener pastures in other firms and this results to higher staff turnover. Infosys and Wipro are reporting attrition rates of 15% and 12.1% which are expected to hold steady or even increase in the coming months. “Last year attrition was only 10-12 per cent. By the time we close this year, attrition could be upwards of 20-25 per cent,” added Giri.
Instead of competing for developed talent some managers are instead opting for freshers. These are then re-skilled so that all the top talent is developed in-house. Skilled employees are then given roles suited to the newly acquired skills.
“Over the last three years, our internal fulfillment is inching up quite steadily. Last year, our internal fulfillment at offshore was 55 per cent which means for every 100 roles, 55 roles were fulfilled internally. We are enabling people who are joining us by reskilling and upskilling them and providing them a suitable role,” said HCL CHRO VV Apparao.
Specific skills in demand include big data, internet of things, automation, full stack developers, machine learning, data science, DevOps, cloud computing/engineering, digital transformation and artificial intelligence. These skill sets are said to have 30-35 percent increase in hiring according to Giri.