20% of lateral movement from IT firms absorbed into GCCs and non-tech firms: Quess Corp
About 20% of the lateral movement from IT firms has been absorbed into global capability centres or GCCs and non-tech firms that are going digital, according to insights from Quess Corp.’s Skills Report FY23.
GCCs in India are rapidly growing in number and are estimated to employ over 3.6 lakh jobs in the coming year, as per industry reports. According to a Zinnov-Nasscom report, there are over 1,500 GCCs in India as of September 2022. This shift is also increasing regional diversity in the industry with a rapid expansion of tech talent footprint across tier-2 and -3 cities such as Jaipur, Coimbatore, Indore, and Kochi.
Despite global headwinds and geopolitical tensions over the past year, the Indian economy has remained resilient with the continued adoption of new-age technologies in FY23, according to the report.
The report reveals that the demand for specific technology skills is consistently rising even across non-tech industries. ERP, Java Full Stack, Data Analytics, Cloud, and Infra Management have emerged as the top skills in demand.
Data from the report indicates that while FY22 saw a significant increase in workforce demand with many firms displaying “talent hoarding” behaviours, this momentum and speed of hiring has tapered down for traditional tech product-based companies in FY23. However, there has been an increase in technology adoption across non-tech industries. This has led to a redistribution of skills, resulting in a correction of demand for professionals and a decrease in associated price premiums within the IT sector.
“Given the global banking crisis and an unprecedented wave of employee layoffs, hiring has been muted in Q4 FY23. While hiring requirements continue to come in as most firms are still in a wait-and-watch mode, GCCs and Indian enterprises continue to add some numbers whereas services has seen a slowdown. We do expect to see some positive resurgence in the coming months as organizations make plans to backfill critical skills but may reduce their bench strength,” said Vijay Sivaram, CEO, Quess IT Staffing.
“Technology is the driving force behind business success as organizations pivot towards a digitally-driven strategy with better products, offerings, and digital roadmaps. This expansion of technology is a major contributor to economic growth, and a broad analysis of the Indian tech job market indicates that the demand for tech roles is consistently increasing,” Sivaram added.
Data from the report reflect that the most sought-after skills suites in the IT sector include Resource Planning or ERP (20.84%), Java Full Stack (27.62%), Data Analytics (16.37%), Cloud (16.34%), and Infrastructure Management (25.94%). Notably, around 82% of the aggregate demand emerged from these five skill sets. The intent to hire professionals with these /skills will continue to rise as tech and non-tech companies digitise to promote their business growth and innovation.
Apart from this, demand for professionals adept with niche tech skills related to Artificial Intelligence and Machine Learning, Big Data, 5G, Cyber Security, DevOps, RPA, and UI/UX also held a considerable share of total demand.
As per the Quess report, industries such as Energy & Utilities (11%), Healthcare & Life Science (11%), Automotive & Engineering (10%), BFSI (7%), and Telecom Networks (6%) held a high demand share for tech talent. The Automotive industry is aggressively transitioning from traditional internal combustion engines to embrace electric vehicles. The Engineering industry, on the other hand, is taking steps to further advance Industry 4.0, while the Telecom industry is actively exploring new ways to implement and leverage 5G networks.
With the world moving towards renewable energy, the Oil and Gas sector is compelled to overhaul its business models and decision-making methodologies with digital solutions. Advanced technologies such as Data Analytics, Artificial Intelligence, and the Industrial Internet of Things enable companies to optimise complex processes and respond more effectively to volatility, shocks, and disruptions.