IT Industry woes – Talents on run

With recruitment season again starting, the war for talents has intensified. Large IT companies are facing huge churn and any amount of employee retention tactics fail to hold on to the talents for long because someone else is ready to pay more. Job seekers are certainly a happy lot. It is very common to see the candidate coming for an interview and asking the first question about what will he be paid. Questions of what technology will he get to work on is the second and what other benefits the company gives is the third. What the candidate would contribute is kind of lost in the process of interview. India has reached a stage where IT has assumed a factory form with everyone moving in a mass production role. Parents are enmass wanting their children to become IT professionals even if the children do not have any aptitude to be anything near about. Colleges are producing Software professionals at a rate unheard anywhere. The mass production of IT professionals do not have adequate quality control and right intake criterion and the output is certainly not upto the mark. IT Companies are recruiting on mass scale, year after year. IT professionals keep job hopping at a pace rabbits would feel shy of and finally, we have the great Indian IT game in full swing. The question is how long this mill will keep running. The year on year 30% profit margins of Indian IT companies already is becoming an eyesore for most of the global companies. These companies have already reengineered themselves a lot to keep this margins and growth at 30% and the scope for further savings is slim. Global companies are looking to reduce the billing either by negotiating rates downwards or off-shoring to their own captives. With such pressure from higher and higher cost of talent acquisition and retention and managing highly aware customer who questions the logic of high margins where they suffer due to recession effects, the road ahead seems to be rough and undercurrents not very comfortable.

Alok Kumar

Alok Kumar is Managing Partner of SRKay Consulting group, a private equity company, nurturing innovative ventures. Alok also serves on the board of ICCL (Indian Clearing Corporation Limited - A subsidiary of BSE- Bombay Stock Exchange) as an external advisor for technology and information security. Prior to this, Alok had been Managing Director of Sears IT & Management Services India Private Limited (SHI) since its inception in December 2009 and served in the same position till very recently. Having been in senior IT management positions in Fortune 500 companies, Alok has won several national and international awards. Alok is instrumental in planning and setting up SHI and thereafter growing it to a multi-locational thousand-plus people organization. Over the last five years, with his strategic vision, Alok helped SHI grow roots in India, develop and support technology applications and infrastructure across core mainframe, cutting edge e-Commerce and big data technologies. With his unique people-oriented transformational leadership style, Alok turned SHI into one of the most valued investments of Sears, garnering great ROIs, and creating value much beyond cost arbitrage. Under his tutelage, SHI has filed two patents and is recognized widely for its best practices in various areas, the latter, currently featured in Indian Institute of Management (IIM) case studies. SHI also became a CMMI Level 3, PCMM Level 3, and ISO 20000 certified organization. Alok is a widely acclaimed corporate leader in India today. He regularly participates and leads various forums as a keynote speaker and is an author of several books in different genres. Alok has several awards to his credit. He is particularly known in the industry for his people management skills and innovative ideas in improving the productivity of employees through unique people practices. He has been credited with the following industry awards: ¬ Emerging Leader of the Year award 2013 by IndiasGreatest.com ¬ Game Changer CEO of the Year 2013 (SHRM) ¬ CIO 100 - The Bold CIOs - 2008 (Reliance Infosolutions) ¬ CIO - Ones to Watch Award 2008 (Reliance Industries) ¬ Extended Manager Award - CIOL 2004 (Tata Teleservices) As an able leader of SHI, Alok got SHI recognized widely in the industry with the following several awards: ¬ CII Award for HR Best Practices in 2014 ¬ Global Excellence in Outsourcing Award - AIOP (Phoenix 2013) ¬ IT Innovation Award (Design & Engineering) - Computer Society of India 2012 ¬ Golden Company of the Year - Economic Times 2011-12 ¬ 7th Employer Branding Awards - World HRD Congress (Mumbai, India) 2013: • ‘Asia’s Best Employer’ Award • ‘Best HR Strategy’ in line with business • HR Leadership Award • Talent Management Award by Bloomberg TV India ¬ Employer Branding Awards - World HRD Congress (Singapore, Asia) 2013: • 7th rank in ‘Asia’s Best Employer’ award • Award for ‘Best HR Strategy’ in line with the business • HR Leadership Award Other recognitions: Alok had served on the distinguished panel of NASSCOM's GIC (Global In-house Centers) National Council members. The council members play a key role in major initiatives of the industry and include the torch bearers of IT industry as panel members. Books and Papers: Alok is an established author, with three books to his credit. Alok’s third and latest book, a novel, “The Spy from Unaula” is a 2015 publication. A handwriting analysis enthusiast, Alok collaborated with his wife Nandani on the book, “Handwriting Speaks” in 2006. “Value Sourcing – Future of IT Outsourcing” was co-authored with Keith Sherwell (currently CIO, Altice USA) and was released in 2013. Alok also researched and published two whitepapers: a. “Creating next generation captives” talks about the best practices that are helping generate higher value from the IT company captives.

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3 Responses

  1. sharada says:

    There needs to be a talent management team that can can have policies to retain the talented people, and for the large outsourcingcompanies who keep their eyes purely on business target lose their sight on human wealth..the balancing art needs to happen, and also we need to find new ways..to attract talent..what other features..apart from pay do people really get attracted..the real talent dont run behind money..running behind ‘raises’ momentarily leave both organisations and people feeling empty on a long run there are IT companies where people join for a good work culture, and who nurture..innovation, but they dont belong to the masses

  2. Sachin P says:

    I totally agreed with your point

  3. Sharada says:

    There are various faces to this trotting and we can’t conclude things so early

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