Pandemic and high attrition give HR management companies push
The pandemic and high attrition in IT services companies have helped HR solutions and management companies grow. Many of these firms have played a vital role in helping IT companies fulfil client requirements by providing them with the necessary talent, much more than usual since the pandemic.
In the words of Aditya Mishra from CIEL HR, IT has been a ‘green sector’ for the recruitment and hiring services firm during the last two years of the pandemic.
He adds that their team has grown a whopping 188% compared to last year to meet demand from clients that includes legacy IT firms and other categories. “Unlike before, we have also seen many SMEs utilizing the services of Staffing and Recruitment firms,” says Mishra.
Quess Corp had stated in its Q4 FY22 earnings call that the company’s workforce management business reported a 28% increase in revenue bolstered by IT staffing by 62%.
The overall hiring of outsourced candidates has grown to 30-35% by the end of March 2022, according to Yeshab Giri, Chief Commercial Officer, Staffing & Randstad Technologies, Randstad India.
Despite all this, their pricing power remains the same.
Much of this demand, he says, can be attributed to an English-speaking talent pool skilled in C, C++, Java, HTML, and Python.
Demand for skills such as data science, cloud computing, artificial intelligence, DevOps, blockchain, machine learning, AR, and VR; cybersecurity has increased, other HR experts say.
Now, the main question arises as economies across the globe are on the verge of recession, how will this sector react. However, the recession might lead to temporary fluctuations in demand for Indian IT professionals overseas as many companies have trimmed their IT budgets to mitigate the business crisis, Giri says.
He adds that salary negotiations might happen, but as most companies work on a contract basis, they will be able to absorb any fee cuts through recurring projects.
Mishra believes that while there could be a temporary slowdown, the actual impact would be apparent in the next few months.