The IT BPM industry is expected to add 3.75 lakh new jobs and reach a head count of 4.85M in FY22, owing to the increased investments and rapid adoption of technology by enterprises, according to TeamLease Digital Employment Outlook Report.
The optimism is not just restricted to overall hiring, it is also impacting the model of employee-employer contract as well. While full-time employment commands the volume, with 17% growth it is contract staffing that will gain significantly from the positivity in the market.
IT contract staffing is expected to reach a headcount of 1.48 lakh employees by March 2022. The acceptance of contract staffing is not restricted to corporate even candidates are opening up to the concept of contract staffing. Unlike before nearly 10-15% of contractual IT-BPM joiners in FY22 are from full-time employment, says the report.
Digital skills are what the industry has set its eyes on this fiscal. Amongst digital skills, 13 skills sets are going to largely in demand and are in fact expected to record a 7.5% growth in this fiscal over FY21. The trend is similar in the contract staffing space too.
TeamLease Digital predicts that the demand for contract staffing for Digital Skills will grow by 50%, a 19% Increase compared to last year.
An in-depth research, the report also delves deep into the skills or roles that are in demand, demand-supply dynamics and above all what are companies doing to address the demand-supply gaps. As per the report digital skills is what the industry has set its eyes on this fiscal.
Amongst digital skills, 13 skills sets are going to largely in demand and are in fact expected to record a 7.5% growth in this fiscal over FY21. The trend is similar in the contract staffing space too. TeamLease Digital predicts that the demand for contract staffing for Digital Skills will grow by 50%. This is a 19% Increase when compared to last year.
Sharing his views on the insights, Sunil C, Head- Specialized Staffing, TeamLease Digital said, “The Indian IT-BPM sector is at the cusp of an unprecedented growth. Apart from being the largest private sector employer (employees around 4.47M people), the IT-BPM industry is transforming India into a hub for “Digital Skills”.”
He said that 43% of our customers are expecting to increase Digital Skills hiring by at least 30% or more this year, however, what is concerning is the demand-supply gap. Addressing the talent deficit will require organizations to re-look at their HR strategies.
According to Sunil, “Organization can solve the talent deficit through three main models:Build: Hiring fresh recruits in addition to ensuring upskilling, re-skilling, and near-skilling culture and training in the organization will lead to great results.
Buy: To fix the talent problem and survive the talent war, organizations have to resort to lateral hiring as the demand-supply gap is increasing.
Borrow: Contract staffing with an organized and experienced contract staffing organization can also help in hiring, training, deploying, and managing talent based on the skillsets where there is an urgent need.
Globally, organizations have adopted a combination of these three modes with borrow proportion increasing exponentially (approx. 18% in the US & 16% in Europe). As IT-BPM employment is poised to double in the next few years, organizations should adopt all three modes in decent proportions to stabilize the talent pool and reduce dependency on one segment of talent.”
“The IT BPM industry is poised to touch 10M employee base in next 5 years and the contract staffing is expected to move up from 3% to 6% of this base.” he added.
As per the study even attrition is gaining traction. While last year’s attrition was due to the pandemic and business uncertainty. This year’s attrition is owing to increased business, higher numbers of resignations. In fact, the attrition rate this is the highest in the history on IT-BPM industry. In FY2022, Full-time employment attrition is set to cross from 13% to 24% and contract staffing attrition is expected to grow up to 49% from 40% in FY2021.