Is High Attrition At TCS Due To Booming IT Job Market?
To adopt relevant technology as a long-term business plan, the companies are on a constant look out for the right skills and talent. And, the rising attrition levels show that one’s loss is another’s gain.
While announcing the quarterly results on July 9, Tata Consultancy Services (TCS), India’s top IT services company, said that attrition has been one of its concerns, as it stood at 15.9% in the quarter ended June 30. The annual attrition level at TCS stood at 14.9% in FY15 — the highest in the last decade, according to the company’s latest annual report. “During Q1, many employees opt for further studies,” Ajoy Mukherjee, executive VP and global head, human resources, explained.
TCS CEO N Chandrasekaran too said the current level of attrition is expected to taper off. Among the various initiatives taken by the company to retain talent, digital training for its employees is a key initiative that is expected to slow down attrition.
For the year ended March 31, 2015, TCS had lost 14.9% of its total workforce of over 3 lakh employees. And then, Mukherjee had told DNA that the reason for attrition was the buoyant job market.
Though not directly linked to attrition, TCS during the last quarter offered largest-ever employee bonus payouts in India’s corporate history. In April, it announced a Rs 2,628 crore one-time bonus to its employees, to mark 10 years of its public listing. The company also announced an average salary hike of 8 percent for its employees in India.
If one ponders over the attrition and efforts to retain employees, there are several factors contributing to the changing job market. The need to adopt new technologies has led to highly competitive market. While Social Media, Analytics, Cloud (SMAC) is the new normal for every business, companies also keep their plans open to new ideas and new technological innovations. And that could be leading to the rising job opportunities.
TCS CEO Chandrasekharan said in April, “We have laid a strong foundation for growth in FY16. Our investments in Platforms, Digital and Automation are gaining traction with clients and together with our market investments in USA, Europe and Japan, we are upbeat that the coming quarters will bring more opportunities to partner with customers across multiple industries. We remain focused on remaining relevant to our customers, our employees and the community.”
Like TCS, there has been an effort by every companies to stay ahead of the curve. And technology is acting as an enabler.
Where are the jobs?
The companies see technologies such as big data, IoT, datacenter Transformation and Desktop virtualization will dominate the business horizon this year. Though there is a skill gap, businesses are bridging it with regular training sessions.
Devasia, managing director of recruitment firm Antal International Network, India, told Business Insider that the setting up of IITs and IT hubs across several states will help address the huge demand for IT jobs in India.
That apart, with increasing exposure to Internet and rising number of smartphone users, there is a spurt in growth of eCommerce platforms.
Digital Media encompasses marketing, consultancy, PR, content creation, social media, mobile, innovation or technology. “The wide range of skillsets and positions within Digital Media also makes it a promising field for job opportunities,” says Rashmi Putcha, CEO, DMTI (Digital Marketing Training Institure).
Skill gap continues
A recent survey by online recruitment portal Monster.com highlights that 68 percent of the respondents feel it is difficult to hire talent for niche skills (technology).
India will have 1.5 lakh digital professionals manning the industry by 2016, according to a recent report by the Digital Marketing Training Institute (DMTI).
Rashmi Putcha, CEO, DMTI says, “While traditional media professionals with years of experience grappling to understand the vibrant medium, aspirants seeking jobs in this lucrative and booming industry are ill-equipped, due to the lack of organized and focused training.”
To address this TCS is planning to train at least over one lakh employees this year in digital technologies as it expects $5 billion revenues from digital stream.
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