Summer Of Discontent In It To Ease With Talent Boosters | Hyderabad News

HYDERABAD: Is the summer of discontent in the IT sector in for a cool down of sorts as the funding winter starts making its presence felt?
Hyderabad’s IT & ITeS sector experts feel that over the next couple of quarters, factors such as a higher return to office (RTO), layoffs in the startup world and global economic pressures triggered by developments like the Russia-Ukraine war could begin slamming the brakes on the great resignation drama that has been playing out in the Covid era when too many job offers have been chasing a limited talent pool.

“We do see a reduction in attrition levels from the peak of 20-40% range to about 15-25% now as the tresspassers will be employed phase has ended for the industry. Companies are now becoming choosy about who they want to retain – critical talent with the right skills, domain expertise and cultural fit,” said Hyderabad Software Enterprises Association (HYSEA)’s new president Manisha Saboo.
She said the work from office (WFO) component too has now hit the 25-30% range with employees gradually accepting that they will have to come back. “Of course, big firms are treading cautiously on WFO as they can’t afford to be rash and smaller companies are taking bold steps on this front as they can’t afford to be lenient,” she said.
However, Ranvijay Lamba, GCC council member (Telangana & AP), Nasscom, feels that while quality talent will continue to remain in high demand, some semblance of stability was expected to descend upon the sector over the next couple of quarters.
“The demand and supply gap has been big in terms of quality talent so there is still going to be pressure on that front and while salaries and attrition may not reduce, they won’t continue to inflate either as the pace at which startups were hiring starts flagging. RTO and global economic pressures will eventually create some sense of stability in the talent market,” Lamba said, pointing to its results already being felt with layoffs starting in the startup space.
Agreeing, HYSEA’s Saboo said: “There is no doubt that in the next two quarters we will see attrition reducing as companies try to woo employees with the value proposition of swanky offices and personal connect even as efforts to ramp up the digital talent pool have improved supply of those with hot skills. Another key factor is the resumption of international travel.”