India’s IT services industry may witness a gross employee addition of 450,000 in the second half of financial year 2022 (H2FY22), according to a study by market intelligence firm UnearthInsight.
The report titled ‘IT Industry Q2 Insights & FY22 Forecast’ said that the IT industry is predicted to have a net employee addition of 175,000 in H2FY22 as there’ll be an attrition rate of around 17 to 19%.
Gaurav Vasu, Founder and CEO UnearthInsight, said, “The finding further brings out the very fact that the IT Industry’s perceived “War on Talent” is real and it’s getting intense with attrition is a rising concern for the industry.
Also, one of the highlights of first half is the way top IT firms have delivered upskilling programmes in completely digital format and have developed robust infrastructure to support such initiatives.
On the hiring side, the industry is expected to see a sharp momentum with addition of around 12% more employees in the second half of the year.”
UnearthInsight also expects the FY23 likely to be around at 16% to 18% and therefore the fresher addition across subsequent 2 quarters is probably going to assist IT Services firms control overall attrition in the industry.
The rise in Industry attrition is essentially driven by the supply-side challenges which are transient and are expected to normalize from FY23.