Three-fourth employers in services sector willing to hire: TeamLease

The hiring boom in India’s services sector is likely to continue in the third quarter, with 73 per cent of employers willing to increase their resource pool, according to the Employment Outlook Report by TeamLease Services.

The intent to hire in the third quarter is strongest in large-sized firms with 79 per cent of employers open to new employees. 57 per cent of small firms and 45 per cent of medium-sized firms were planning to hire in the next quarter, the report says.

The key sectors expressing a higher intent to hire included Information Technology (96%), educational services (95%), E-commerce and allied start-ups (92%), and telecommunications (90%). It was followed by the essential retail sector (79%), financial services (78%), and logistics (75%). Organizations are largely hiring for IT, Sales, and Engineering roles.

“The positive synergy across these sectors is primarily driven by the ongoing festive season (E-commerce, retail, and logistics), roll out of 5G technology (telecom and IT), and the shift to digital learning (start-ups and educational services)”, said Ajoy Thomas, Vice President at TeamLease Services.

The intent-to-hire indicator is particularly adapted to capture both moderate and significant changes in hiring sentiment as companies, based on a survey of 579 service companies across 14 cities in India.

According to the report, attrition stayed under control in the sector in the last quarter. IT faced the highest level of attrition (25.23%), followed by Educational Services (15.24%), and Ecommerce & Allied Start-ups (14.02%).

Around 95 per cent of companies will look to expand their workforce in Metro and tier-1 cities, while 75 per cent will hire in tier-2 cities. However, the report found smaller cities and rural geographies still stand low on hiring intent, as the trickle-down effect of post-pandemic services job creation is yet to gain significant traction.

The locations for services-focused job roles are Bangalore (97%), Chennai (90%), Delhi (86%), Hyderabad (82%), Mumbai (79%), Pune (69%), and Kolkata (55%). For the IT industry, the top location continues to be Bangalore and Mumbai for Financial Services and Telecommunication in Delhi.

Mayur Taday, Chief Business Officer, TeamLease Services, said, “The resurgence in the services sector post-COVID has been strong. Companies have shown a lot of optimism to increase their workforce. The festive quarter has brought positive tidings, especially for freshers and entry-level talent. Close to 74 per cent of employers are enthusiastic to hire young talent, and 69% to hire junior talent. For mid and senior-level talent, hiring intent stood at a moderate 48% and 34% respectively”.