IT-BPM Industry To Create 3.75 Lakh New Jobs In FY’22: Report
TeamLease Digital, the specialised staffing division of TeamLease Services today launched the first edition of their report titled TeamLease Digital Employment Outlook Report. A comprehensive report brings forth insights on how job creation and hiring is panning out in the IT-BPM sector. According to the research findings, aided by increased investments in the sector and rapid adoption of technology by enterprises; the IT-BPM industry is on a positive hiring trajectory. The sector is expected to add 3.75 lakh new jobs and reach a headcount of 4.85M in FY22.
The optimism is not just restricted to overall hiring, it is also impacting the model of employee-employer contract as well. While full-time employment commands the volume, with 17% growth it is contract staffing that will gain significantly from the positivity in the market. IT contract staffing is expected to reach a headcount of 1.48 lakh employees by March 2022. The acceptance of contract staffing is not restricted to corporates even candidates are opening up to the concept of contract staffing. Unlike before nearly 10-15% of contractual IT-BPM joiners in FY22 are from full-time employment.
Sharing his views on the insights, Mr. Sunil C, Head- Specialised Staffing, TeamLease Digital said, “The Indian IT-BPM sector is at the cusp of an unprecedented growth. Apart from being the largest private sector employer (employees around 4.47M people), the IT-BPM industry is transforming India into a hub for “Digital Skills”. 43% of our customers are expecting to increase Digital Skills hiring by at least 30% or more this year, however, what is concerning is the demand-supply gap. Addressing the talent deficit will require organizations to re-look at their HR strategies. Organisation can solve the talent deficit through three main models: Build: Hiring fresh recruits in addition to ensuring upskilling, re-skilling, and near-skilling culture and training in the organization will lead to great results. Buy: To fix the talent problem and survive the talent war, organizations have to resort to lateral hiring as the demand-supply gap is increasing. Borrow: Contract staffing with an organized and experienced contract staffing organization can also help in hiring, training, deploying, and managing talent based on the skillsets where there is an urgent need. Globally, organizations have adopted a combination of these three modes with borrow proportion increasing exponentially (approx. 18% in the US & 16% in Europe). As IT-BPM employment is poised to double in the next few years, organizations should adopt all three modes in decent proportions to stabilize the talent pool and reduce dependency on one segment of talent.”
“The IT-BPM industry is poised to touch 10M employee base in next 5 years and the contract staffing is expected to move up from 3% to 6% of this base,” added Sunil
As per the study, even attrition is gaining traction. While last year's attrition was due to the pandemic and business uncertainty. This year's attrition is owing to increased business, higher numbers of resignations. In fact, the attrition rate is the highest in the history of the IT-BPM industry. In FY2022, full-time employment attrition is set to cross from 13% to 24% and contract staffing attrition is expected to grow up to 49% from 40% in FY2021.
A comprehensive report, Digital Employment Outlook Report is qualitative research that has surveyed and interviewed more than 100+ employers/ leaders consisting of contract staffing heads, subject matter experts, TeamLease Digital leadership, ITBPM Ecosystem Stakeholders ITBPM ecosystem stakeholders like CHROs, Talent acquisition leaders and Digital Transformation Leaders.
