Employee attrition among global IT vendors is a top concern: report
Employee attrition among global IT vendors, including major Indian companies, has been a major concern for their customers across the globe as it has affected project costs and timelines, according to a report from the research firm. world Everest.
The IT outsourcing industry is largely responsible for managing today’s global technology and is the backbone of almost all global industries, including energy, commerce, finance and logistic. The report says that all of those industries that we rely on to keep global economies afloat and companies run are big IT contractors.
Attrition for different Indian companies ranges between 7 and 17 percent.
âVoluntary attrition for IT services calculated on an annualized basis has increased to 15.2%, as the demand for talent increased,â Pravin Rao, COO, Infosys, told analysts when discussing the results of the March quarter. In another call to investors, Brian Humphries, CEO of Cognizant, said: âThe impact of the pandemic on industry attrition rates, absenteeism and customer delivery remains somewhat uncertain. “
âWe have faced a lot of attrition over the past 18 months. Although the partner provided resources on time, the knowledge management process was not streamlined, which affected the timelines of our projects, âa new product development manager said in the report. diversified financial group Fortune 500. More than 500 global companies – with revenues ranging from $ 1 billion to $ 60 billion – that use the services of independent software companies were surveyed for the report.
Cultural suitability for onshore talent was identified as one of the most important aspects for companies that preferred skills that master the local language and can understand the nuances specific to the geography of their operations. Companies are also looking for technology providers who can provide the right level of technical and domain expertise. They want people who understand the industry well and who can combine their technical knowledge and domain knowledge to drive business results.
As a result of the pandemic, talent challenges have worsened as many service providers have not been able to effectively switch remotely. Many in-flight projects had to be canceled due to travel restrictions, and Covid-19 had an impact on the bandwidth of available resources, said Yugal Joshi, vice president of Everest Group, one of the authors of the report.
Attrition has been a concern and is now increasing rapidly as Western economies open up. There are cases where both service providers and companies are losing talent, especially in onshore regions. As travel restrictions persist, the Indian service providers’ âlanding resourcesâ model has faced enormous challenges, he added.
Warm up onshore talent
As visa workers can no longer fill the positions for a period of time, the local land-based talent market is heating up significantly, leading to attrition. Customers have to pay a lot more to retain talent, and some are building a âtalent war cacheâ just to get through this troubled time.
The project deadlines were reasonably respected. However, many of the in-flight projects were suspended or delayed, but were eventually resumed and completed. Given the onshore talent issues described above, many engagements that would otherwise have required an onshore presence were supplied 100% from offshore locations such as India. He added that the remote transition, compliance and training took longer than expected, but did not have a significant impact on customers.