The growth of the Indian economy in its recent years has been boosted in large part by IT sectors, particularly global outsourcing businesses. However, there is also some bad news as many global IT giants are downsizing. So, is the IT sector of the country no longer a good place to find one’s career? What are the best ways of landing these jobs? Staffing and recruiting companies or campus placements? There is a lot of mix news. Here a close look at the IT sector in the country is taken.
A brief survey of the IT sector jobs in India
The IT sector is among the most significant contributors to the Indian economy. According to the report ‘Decoding Jobs Sectorial Report 2023’ by Taggd, the sector currently contributes 9.3 percent to the country’s Gross Domestic Product (GDP) and employs five million people. The report also asserted that the present market for the sector stood at 19 billion dollars. The sector has also witnessed the rise of several major unicorns.
The future trends
India’s market share has now increased to 59 percent in the global sourcing business (‘Decoding Jobs Sectorial Report 2023’ by Taggd). That is a testimony to the country’s strength in IT services. There is also a generally positive outlook in the sector, with recruitment likely to increase every year.
Trends in talent acquisition in the IT sector
The following are some of the significant trends witnessed when it comes to talent acquisition in the IT sector:
- The recruiters are primarily looking for newer talent. They intend to focus on employees with experience of less than five years. The study’ Decoding Jobs Sectorial Report 2023′ by Taggd suggests the highest preference (32 percent) for workers with one to five years of experience and 28 percent for freshers. Interestingly, the intended recruitment opportunities stand at a lowly 13 percent for workers with more than ten years of experience. That may be primarily due to the fast-changing job profiles in the company, as the industry is run by highly innovative opportunities.
- There are an estimated 4.5 million skilled job openings at the moment in India’s IT industry. Some job profiles that are witnessing demand are software developers, programmers, database and network administrators, testers, and computer and information analysts.
- The IT sector is also witnessing growth in tier-2 and tier-3 cities. That may be owed to several reasons, including saturation of tier-1 cities and emerging talent in tier-2 cities. Among other reasons are government incentives and lower costs. A dramatic shift in the recruitment intent in this regard was suggested by ‘Decoding Jobs Sectorial Report 2023’ – claiming the rise of workers in tier-2 cities from 33 percent to 47 percent with a similar decline from tier-2 towns (67 percent to 53 percent).
- Another exciting trend is the rise of the WFH (Work from Home) culture. With 10 percent of the workforce working from home and 66 percent working in a hybrid system, the IT sector is leading the rise of WFH culture.
- The report ‘Decoding Jobs Sectorial Report 2023’ by Taggd has claimed that three primary sources of recruitment are (I) recruitment services company (28 percent), (II) company website and internal references (26 percent), and (III) campus placements (18 percent). Together they make nearly three-fourths of total recruitments in the sector.
- Some of the skills in demand are DevOps, Cybersecurity, Blockchain, Robotic Process Automation, AR/VR (Augmented reality/Virtual Reality) in Online Gaming, IT Architecture and Design, and Cloud computing.
- The IT sector is one of the leaders when it comes to gender diversity, with 35 percent of the workforce at entry level. About 38% of the women workforce are at entry-level, while 26%, 19%, and 17% work respectively at the managerial, senior managerial, and executive levels. (‘Decoding Jobs Sectorial Report 2023’ by Taggd)
Significant issues faced in human resource management in the IT sector
The following are some of the most significant issues faced by the IT sector when it comes to its human resource management:
The problem of moonlighting in the IT industry has made it to social media frequently, with many industry veterans talking about it.
- High attrition rates
The IT industry has one of the worst attrition rates across sectors. According to Decoding jobs Sectorial Report 2023′ by Taggd, at 25 percent, and double that rate for contractual workers. About 88 percent are ready to quit, the report claimed. Of these, 46% are seeking work-from-home (WFH) alternatives, and another 46% are seeking positions with higher compensation. The rest find their work constrictive, as they are unable to pursue other interests and pastimes (at least not without added commuting times).
- Need for better pay.
There was a time when the IT sector was able to attract some of the best talent in the country even though it was offering competitive pay. However, that is very far from the case now. There is an increased dissatisfaction in employees who are no longer satisfied with what they make.
- Lack of talent
Though quantitively, the IT sector is not lacking in the talent pool, but, unfortunately, a whopping 80 percent (an estimate quoted in Decoding jobs Sectorial Report 2023′ by Taggd) are considered ‘entry-level.’ That is a chief reason for remaining so many vacancies in the sector; a situation worsened as fewer computer science graduates enter the sector every year.
Some suggested solutions
The following are some solutions suggested for the problems above:
- Development of IT hubs in tier-2 cities
The development of IT hubs in tier-2 cities can offer several advantages – a wider talent pool as tier-2 city youth may be more inspired to work in the sector, reduced attrition rates, etc.
- WFH, hybrid and flexible working systems
Some of the challenges from employees can be easily resolved by offering WFH and hybrid working modes wherever possible. Flexible working hours can also be introduced.
Taggd – the Best Digital Recruitment Platform for IT.
Job platforms dominate the recruitment scene in the IT sector, and Taggd is the best digital recruitment platform currently operating in India, with over fifteen thousand placements in the sector. Of these, over four thousand placements are in niche fields like IoT (Internet of Things), Big data, Hadoop, Machine learning, AI (Artificial intelligence), NoSQL, Cloud computing, Cloud Ops, etc. It is currently making over two hundred placements every month across India. Its client list includes one of the three biggest IT companies in the country, among several others. (Taggd Capability Deck) In short, it is the best platform for hiring employers looking for the best talents in the IT sector.