Supply-side issues hit IT hiring amid high attrition
The supply side and the demand side in the medium to long term are easing up in terms of talent coming from outside of the immediate industry system
image for illustrative purpose
Hiring Vs Attrition
- Attrition yet to ease hiring numbers coming down
- Some calculate attrition on resignation date
- Some calculate last day in the office
- It leaves 60 to 90-day lag
Bengaluru: IT services companies in India continue to face the supply-side issues with high employee attrition reported in the first quarter of ongoing financial year. However, some companies have started to report marginal drop in their employee attrition number giving an early indication of easing talent problem in the industry.
According to industry experts, the rate of employee addition has slowed down across the industry. This will start reflecting in the quarterly numbers in the next quarter or so, they added.
"The hiring pace has definitely slowed down. We have seen that across the industry. Current, employee attrition number is mostly due to the base effect coming due to LTM (last twelve-month calculation). The industry should see attrition number coming down in the next quarter or so," said an HR sector expert, who heads India unit of a large hiring firm.
"We can see that happening given the hiring mandate given to hiring firms for now," he added.
