The Information Technology and Business Process Management (IT-BPM) industry’s attrition rate has reached 25.2% this year and is expected to increase further in the future.
According to a report by professional services platform TeamLease Digital, tech employees are moving away from traditional companies and into non-IT industries as digitalization creates more opportunities and jobs in these sectors.
TeamLease expressed concern about the contract staffing industry, predicting that attrition in this sector will be at 50 to 55% in FY23, up from 49% in FY22.
TeamLease Digital CEO Sunil Chemmankotil said, “Tech talent in non-tech companies will see 3X growth in the coming years, opening up approx 1 [million] new tech jobs by 2025. This will lead to further shifts of IT talent from traditional companies in the near future.”
Moreover, the survey also indicated that 57% of IT professionals would not consider returning to the sector in the future as their desire for flexibility, career growth, and employee value proposition grows.
“With the industry expected to grow two-fold over the next few years, we expect organizations will continue to lose their top talent, and it would be very difficult to retain them without any strong measures,” added TeamLease Digital Chief Business Officer Siva Prasad Nanduri.