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.