Talent disruption in India’s IT sector and how the industry can overcome it

The IT sector in India is in a state of turmoil, facing talent disruption and new challenges due to the pressure to control costs, even with the continued challenge of talent and skill shortage, making it harder to compete on compensation. Despite over 1400+ companies laying off over 260,000 employees after indulging in excessive hiring practices, demand for tech talent dramatically outstrips supply. While talent pool availability has increased due to such layoffs, the shortage of good-quality talent is still a big concern. As per some leading research reports, this trend is expected to continue until 2026. This disruption has had a significant impact on talent acquisition and retention.

The situation has been further exacerbated due to disruptive technologies such as digital, cloud, cybersecurity, data science and big data analytics, making existing skills obsolete. Government, education, and healthcare sectors also compete for talent as they plan significant digital investments. This requires IT professionals to continuously upgrade their knowledge and stay current with current trends to remain competitive.

At the same time, the industry is also facing increasing competition from new players, such as start-ups that offer innovative solutions at lower costs. To overcome these challenges and remain competitive in 2023, India's IT sector needs innovative strategies to focus on building robust talent pipelines.

Employee experience and engagement strategies should be implemented to help retain existing talent. Culture and engagement are top priorities of most management teams. Recent research shows that less than 20% of employees feel connected to a company's culture. Companies should create an environment where employees feel valued, connected, and engaged. Moreover, companies should build support networks where employees can mentor and learn from one another.

Providing job stability is another element companies should focus on. Job security and consistent training are essential to ensure employees have the support they need to succeed. Companies should implement innovative strategies such as job rotations and cross-training programs that enable IT professionals to increase their skillset to remain competitive. Enterprises should focus on re-evaluating their Employee Value Proposition to include respect, recognition and people management practices that emphasize and showcase stability.

India's IT sector should also develop a strong employer branding strategy to attract talent. This can be achieved through initiatives such as creating a comprehensive diversity and inclusion program, leveraging social media platforms to promote employer brands, launching employee referral programs, using AI-based tools to streamline recruitment, and ensuring competitive salaries. Companies should also focus on upskilling current employees to make them future-ready.

India's IT sector must also emphasize reskilling and up-skilling initiatives to adapt to evolving technologies. This will help existing talent stay competitive and attract new talent. It would be good to re-evaluate job descriptions for nice-to-have versus must-have skills and focus on the must-haves. To entice prospective candidates, it will be essential to emphasize the desirable qualities of the position. It is critical to continually evaluate attrition rates and direct intensive attention towards staffing.

Companies should focus on developing talent pipelines to ensure a steady supply of skilled talent. To do this, they must identify suitable sources such as universities, boot camps and coding academies that provide quality education and training. Companies can also consider partnerships with universities and other educational institutions to offer internships and apprenticeships as an effective way to create a talent pipeline.

Finally, the IT industry must emphasize stakeholder collaboration, including government organizations, educational institutions, employers, and professionals. Such partnerships can create a supportive ecosystem enabling companies to access the best talents while fostering innovation and creativity within the sector.

In today's ever-changing tech landscape, companies need to focus on developing strategies that will help them stay ahead of the competition and remain relevant in the industry. With innovative strategies for employee experience, upskilling and developing talent pipelines, companies can ensure they have the right talent to stay competitive and succeed. It remains to be seen how India's IT sector will overcome the current tech turmoil and stay competitive in 2023.