IT services is a booming industry in India. Right from small-sized IT companies to large multinational corporations, everyone seems to be looking at hiring and grooming talent that can help them grow their business in this niche. While there are many advantages to working as an IT professional in India, the country continues to face several challenges when it comes to hiring. The cost of living remains one of the primary concerns for most expats and companies struggle with finding the right talent at affordable rates. In this article, we will look at some of the key challenges that you may face as a small IT company hiring new talent.
Hiring is the biggest challenge for Indian IT companies
The biggest challenge for Indian IT companies is to find and hire the right talent. While the need for talent continues to grow and become a significant driver for growth in this sector, hiring the right people to fill the roles remains a challenge for many companies. If you are managing a small IT company, you will find it even more difficult to find the right kind of people. The biggest challenge for many small IT companies is to find people who possess the right combination of skills for the job. It is estimated that there is a shortage of 4.5 million skilled workers in the IT sector in India. To make matters worse, the number of computer science graduates who are joining this industry has reduced over the last few years. What’s even more concerning is that the number of women joining the IT industry has been falling consistently.
Lack of quality talent
The Indian IT industry is facing a challenge of lack of quality talent. It is estimated that 80% of the workforce in the Indian IT industry falls under the ‘entry-level’ category. Many of these people lack the skills and abilities to continuously deliver quality work. What’s more, companies are finding it difficult to re-skill their employees and are looking for freshers who can be trained for a specific job. If you are managing a small IT company in India, you may find it challenging to find quality people. There are several reasons for the lack of quality talent in the country’s IT sector. The Indian education system is yet to catch up with the global demand for tech-related courses. The lack of quality when it comes to training, as well as salary issues, are also other factors that are hampering the growth of Indian IT companies.
Shortage of skilled workforce
This is yet another challenge that Indian IT companies face. With the country’s economy growing at a faster rate, the demand for IT services has increased to the extent that companies are struggling to find the right talent. While it is true that the number of jobs in the sector is growing, the number of people who are trained to do this work is falling. What’s more, many of the people who are trained to do this work are opting for jobs in the BPO sector, which is reported to pay more. This is why many companies are struggling to find quality people and have ended up hiring people who have the right skills and knowledge.
High attrition rate among employees
The attrition rate among employees in the Indian IT sector stands at 25%. This means that every year almost 1 out of every 5 employees decides to end their relationship with their organisation. This is a worrying sign for the sector as well as for companies who continue to hire new people. If you are managing a small IT company, you may find it challenging to retain your employees. The cost of living and salary issues are two of the key factors that contribute to the high attrition rate among employees in the sector. If you are working in this industry, you may also be thinking about leaving your job and moving on to something new.
Smaller organizations struggle to find a substantial pool of women candidates.
It is estimated that around 34% of the workforce in the IT industry in India is made up of women. While the government has been trying to address this issue, finding a substantial number of women candidates for jobs in the sector is a difficult task for smaller organisations. What’s more, the salary difference between men and women for the same kind of job is 26%. This means that smaller organisations may find it challenging to hire women candidates due to their salary expectations.
Conclusion
The Indian IT sector continues to face a number of challenges as a whole. From finding quality talent to hiring women, these sectors have a long way to go. While there are many advantages to working as an IT professional in India, the country continues to face several challenges when it comes to hiring. The cost of living remains one of the primary concerns for most expats and companies struggle with finding the right talent at affordable rates. In this article, we have looked at some of the key challenges that you may face as a small IT company hiring new talent. The biggest challenge for many companies is finding the right talent. If you are managing a small IT company, you may find it even more difficult to find the right people for your company.
