The telecom sector during the October-December 2022 quarter saw an attrition rate of 12.05 per cent, a six-quarter high, and is set to rise further in the coming January-March period, according to an ET report attributing a TeamLease Services study. It added that the sector faced challenges around retaining technical and service staff, many of whom moved to tech companies amidst a war for talent.
The study said attrition in the telecom sector is expected to rise going forward as various sectors are vying for talent with skills related to 5G technology and use cases.
According to the ET report, TeamLease Services chief business officer Mayur Taday said the convergence of telecom and technology had led to an exodus of technical staff, especially those skilled in AI/ML, and loT. “On the technical staff side, the professionals who found fungibility of skills across sectors (mainly AI/ML and loT related skills), took the opportunity to move out (of telecom companies),” Taday said.
Its Employment Outlook Report (Services) for January-March 2023, TeamLease said the attrition rate in telecom saw an increase of 2.02 per cent from the preceding quarter.
Reliance Jio and Bharti Airtel are in the process of rolling out 5G networks in the country, starting with major cities. They plan to cover most parts of India in 18-24 months. The study said most telecom hirings are happening in metro cities for now.
“Telecom jobs have shown an encouraging trend in line with the rollout of 5G services, as key players have launched their digital services in various metro cities, expanded their data centre capabilities, and hired for specialised roles. As the adoption of 5G services increases, handset sales will increase,” Taday said.
Meanwhile, in the September 2022 quarter, IT companies — Tata Consultancy Services (TCS), Infosys, Wipro and HCL Tech, among others — also faced high attrition rates and the IT sector’s average attrition rate (last twelve months) is currently as high as 25 per cent. The past few quarters have seen higher attrition rates, and hiring has slowed. Experts have said the primary reason for high attrition is that the growth opportunities are now relatively lesser in the IT sector as compared to other sectors.
This week, Infosys reported voluntary attrition of 27.1 per cent for the September 2022 quarter (Q2FY23). Although it was lower than the previous quarter’s 28.4 per cent, it is higher on a yearly basis as compared with the 20.1 per cent recorded in Q2FY22.
HCL Tech’s attrition (last twelve months) remained at 23.8 per cent in Q2FY23, TCS attrition rate in IT services was 21.5 per cent during the September 2022 quarter (higher than 19.7 per cent in the previous quarter and 17.4 per cent in the March quarter). Wipro’s voluntary attrition, measured in the trailing 12 months for the quarter, was at 23 per cent, a moderation of 30 bps from the previous quarter, the company said.
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