Monday, December 5, 2022
HomeNewsIT/ITes to hire over 1 million by end-2023, says industry body

IT/ITes to hire over 1 million by end-2023, says industry body

According to the Indian Staffing Federation (ISF), which represents more than 100 recruitment and flexi staffing companies, the domestic IT and ITes industry is expected to hire 800,000 to one million individuals by the end of 2023. 

The tech hiring frenzy will continue, and attrition will take at least a year to lessen as the urge to poach from competitors eases.

“The sector is adding 400,000-500,000 a year and we do not see demand easing soon,” said ISF president Lohit Bhatia.

Approximately 4.5 million people work in the IT industry. No tech firms are expected to amend their non-compete agreements, according to the industry association, which sees a substantial section of the workforce with 0-8 years of experience.

“I don’t think any organization would completely open the no-compete clause and allow people to walk away with data and customer information,” Bhatia said.

The ISF’s remarks follow an appeal by a Pune-based labour union to the Union Labour Ministry, requesting that Infosys remove its non-compete clause. Employees cannot work for a competitor on identical projects, clients, or regions, according to the clause, which is customary in the sector. 

The spotlight on these clauses comes at a time when the tech industry is experiencing unprecedented levels of attrition. In the March quarter, Infosys, Wipro, Tata Consultancy Services (TCS), and HCL Technologies had record high attrition rates. During the quarter, Infosys experienced a 27.7% attrition rate, while TCS experienced a 17.4% attrition rate. Wipro had a 23.8 per cent attrition rate, whereas HCL had a 21.9 per cent attrition rate.

However, ISF’s Bhatia said that the attrition numbers will come down in a year. “Attrition is hovering around 25%. It will ease in a year once tech firms with their hybrid policies hire from smaller towns. This will ease pressure to recruit from rivals in cities,” he said.

Subscribe To Newsletter

ICYMI

BRL Editor
BRL Editorhttps://businessreviewlive.com
Business Review Live covers finance, technology, travel, lifestyle, and everything in between through exclusive interviews and analysis, market statistics, digital video, and an expanded array of content formats.