New Delhi: The Indian IT sector had employee attrition of 25.2% in FY22, and this pain would persist as talent leaves for other sectors, according to a survey by TeamLease.
According to the research “Brain Drain: Tackling the Great Talent Exodus in IT Sector,” attrition in the contract employment business is expected to reach at least 50% in FY23 as opposed to 49% in FY22.
Talent is moving due to company rules, compensation, and work flexibility as non-technology industries increase demand. “Tech talent in non-tech companies will see 3X growth in the coming years, opening up approx 1 million new tech jobs by 2025. This will lead to further shifts of IT talent from traditional companies in the near future,” said Sunil Chemmankotil, chief executive officer of TeamLease Digital.
The IT industry is growing but it is becoming difficult to retain talent. “The survey indicates that 57% of IT professionals would not consider returning to the IT services sector in the future. With the usual demand for salary hikes and other benefits, the main attraction for employees in their new jobs is ‘Great Reflection’ on the internal policies and external factors that should be relooked at by employers as we are viewing great changes in the employees’ feelings about work and life,” said Chemmankotil.
“With the industry expected to grow two fold over the next few years, we expect organizations will continue to lose their top talent and it would be very difficult to retain them without any strong measures,” said Siva Prasad Nandur, chief business officer, TeamLease Digital.
Up to 60% of respondents claimed that workplace flexibility would encourage them to stick with a business. According to the poll, 50% of respondents thought employers should offer possibilities for professional growth. Up to 27% of them wished for businesses to emphasise corporate culture in order to keep workers.