The ‘A' word is back.
Attrition, that had HR heads on the tenterhooks during the pre-recession period, has made a quicker comeback than expected, much to the relief of skilled software professionals.
Thanks to a rejuvenated business environment, attrition levels in the IT industry have gone up in the recent past, said former president of ITsAP (Information Technology and Services Industry Association of Andhra Pradesh) M. Narasimha Rao.
Higher attrition implies an improved business environment where manpower-hungry company managements' seek out skilled workforce. While they poach on each others' human resources, it is the techies who have the last laugh as more the demand, better the compensation packages get.
“Hiring has definitely picked up in the last few months. Each and every company is recruiting full steam as their requirement needs arise,” said V. Satyanarayana, Head (HR), ADP India.
“The market is warming up. Right from the second quarter, companies have been actively recruiting,” averred E. Suman Reddy, Managing Director, Pegasystems India.
While better emoluments definitely are a magnet, other factors like an opportunity to work in an area, technology or domain one is interested in; promotion; relocation etc. also lure employees to shift companies.
12 – 25 p.c. erosion
Although concrete data is not yet available, industry sources peg the current attrition levels at around 12-15 per cent. At its peak, prior to 2008, the attrition rate touched an excess of 20 per cent.
“Some of the prominent challenges to recruitment activity in the IT industry are scarcity of right talent, mismatch between skills and salary expectation and high attrition rate,” said Seshagiri Rao, HR Head of Prithvi Information Solutions. “Companies are addressing the challenges through measures such as recruitment of freshmen, focus on learning and development, offering skill-based and staggered incentives and healthy hikes.”
Apart from those with technical expertise in Java, .Net, Business Intelligence, Analytics, service-oriented architecture, professionals with domain expertise in life sciences, retail, telecommunication, banking, financial services and insurance (BFSI) are also sought after, say industry sources. “Clearly, there is a break both at the entry as well as lateral levels,” said Ramesh Loganathan, Managing Director, Progress Software India.