With workplaces expected to open up completely in the next few weeks and the number of Covid-19 cases declining across the country, India's IT sector is expected recruit 360,000 freshers this year.
The industry, however, continues to see an uptrend in attrition at 22.3 percent in the third quarter of the currency fiscal as against 19.5 percent in the last quarter.
The attrition is likely to elevate to 24pc in the fourth quarter but will likely come down to 16-18 percent in FY23, says UnearthInsight, a metrics benchmarking and market intelligence firm. The increase in attrition continues to be driven by the rising demand for new-age digital skills across industries and is a key challenge that companies continue to encounter.
Information and technology (57pc employers willing to hire) is leading as the top sector that intends to hire freshers followed by telecommunications (43pc) and ecommerce and technology startups (41pc), according to the "Career Outlook Report" by TeamLease EdTech.
The IT sector dominates the job market for freshers, offering 31pc entry-level jobs, it said.
3,50,000-3,60,000 freshers expected to be added in FY22 by 30+ IT Services firms, accounting for 14pc-18pc of the freshers in total headcount "Despite the nationwide severe pandemic wave in last few weeks, the IT Industry growth outlook remains intact and this financial year industry is likely to achieve best ever revenue growth and will continue to add workforce as per the estimates.
While Industry's wage bills are on an upward trend, attrition levels continues to be a matter of concern for industry and it's likely to continue for another quarter before it starts improving from next FY," said Gaurav Vasu, Founder and CEO, UnearthInsight.
To retain talent, companies announced a number of measures like salary increases, stock options, promotions, long-term incentives, higher skill increments, upskilling/reskilling training etc. These are being implemented across quarters and not together.
Wages have risen by 8-12pc in Tier I and Tier II companies along with 15-20pc of the employee promotions for retention.
