Tech sector productivity declines amid global workforce shifts: Prohance report
BENGALURU, INDIA — ProHance’s latest Global Productivity Benchmarking Report reveals a notable decline in productivity within the tech sector.
The report, which analyzes data from over 280,000 users across 65 organizations worldwide, shows a 4% decrease in productive time for the tech industry over the past three quarters. This contrasts with a 6% increase in productive time observed in non-tech sectors, highlighting a significant divergence.
“These results are cause for concern and demonstrate there may be a need for intervention within some organizations,” stated Brendan Maree, Vice President and Country Manager for Australia and New Zealand at ProHance.
The report aims to empower businesses to make informed decisions, set realistic goals, and implement best practices for success in today’s competitive environment.
BPO sector maintains productivity standards
The report identifies that the business process outsourcing sector consistently meets its target productive hours, maintaining its time benchmark of 7 hours from the first quarter of the year to the second quarter.
Other sectors, such as Revenue Cycle Management (RCM), Healthcare, Publishing, and Staffing are also the same.
In contrast, sectors like Banking, Financial Services and Insurance (BFSI), IT, and Logistics show room for improvement.
Notably, the legal sector was the only one to meet its productivity time benchmark in Q2 2024, while sectors such as IT, Logistics, and Merchandising fell short of the target of 7.5 productive hours per workday.
Organizational size impacts productivity metrics
The report also examines productivity variations by organizational size. Large organizations, with over 5,000 users, and small organizations, with fewer than 1,000 users, recorded improvements in productivity in Q2 2024. However, medium-sized organizations, those with 1,000 to 5,000 users, experienced a slight decline during the same period.
“The report shows there is opportunity for many organizations to improve rates of productivity in the months ahead,” Maree added. ProHance is committed to providing organizations with the tools and insights they need to achieve optimal workforce productivity.
Strategic interventions required for tech sector
The findings from ProHance’s report indicate a pressing need for the tech sector to address productivity challenges.
As non-tech sectors continue to improve, tech companies must consider strategic interventions to enhance their productivity metrics. By leveraging insights from such benchmarking reports, organizations can set realistic goals and adopt best practices to remain competitive in the global market.
