Which IT skills are likely to land you lucrative job offers?

India’s $195 billion IT industry is increasingly making its presence felt across the world. In FY 22, its revenue grew by $30 billion to reach the $227 billion mark. The industry registered an impressive 15.5% growth. And, according to Nasscom, it was the highest since 2011.

The industry also added the highest ever 450,000 new employees in FY22, taking the employee base to 5 million.

But, even as it recruited a record number of new talent, the industry was besieged with an all time high attrition rate.

Just look at the IT bellwethers. At Infosys, on a last twelve months basis, the attrition rate hit a record high of 27.7 percent in the fourth quarter of FY22. Meanwhile, India’s largest IT services company, Tata Consultancy Services, saw record attrition in the March quarter at 17.4 percent.  

And IT companies have been at their wits end, doing their best to retain talent. Some resorted to novel ways to keep employees on board.

According to reports, companies doled out salaries much above the prevailing market rates. Some even gave 100 percent hikes. Employee stock options were also being dangled in front of software engineers. Fintech firm BharatPe offered BMW bikes to new entrants.

Techies, who have a few years under their belt, are now getting multiple job offers.

Some IT companies, fintechs, and even startups, have started delaying the payout of employee’s performance bonus in a bid to delay their departure. Apparently, this gives the company more time to find a replacement.  

But why this churn?

Experts believe that demand for digital talent has outpaced supply. The pandemic has also caused an acceleration in digital adoption. This, too, has contributed to the intense race for talent, not only from the IT giants, both global and domestic, but also from nimbler start-ups.

But some experts also believe that this churn cannot continue indefinitely and that things will settle down sooner rather than later.

However, the skill sets that were at the centre of the talent race will still be necessary for any aspiring techies who want to make it big.

According to the TeamLease Digital Employment Outlook Report, released last December, the IT-BPM industry had set its eyes on digital skills in FY22. And, among them, 13 skill sets were going to largely be in demand. In fact, they were expected to record a 7.5 per cent growth in FY22 over FY21.  

Also, according to the same report, the demand-supply gap is widening for data engineering, data science, machine learning and artificial intelligence skills.

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A talent solution and IT staffing expert Business Standard spoke to also emphasised on these skill sets.

However, the IT industry -- and in fact most businesses-- are standing on the cusp of momentous changes, the effects of which are yet to be fully understood.

Clearly, techies will have to adhere to up-skilling religiously. But, what about the industry? At the end of the day, a company can either build the talent or buy it. But, if the churn doesn't indeed subside in the coming year, could it be perhaps time for the industry to look at a third option? They may also look to borrow, so to say, talent by engaging companies that provide temporary staffing solutions.

There will indeed be dearth for digital talent in the market who can keep pace with the technology. Take for example the potential of the metaverse, and the skills that it will require. With 5G becoming the norm in the coming years, the Internet of Things will also take off in a big way. The situation is dynamic and thus, it is hard to predict whether the same skills that are so in demand today will still be at the top five years down the line. They will remain relevant, no doubt, but will they still command the premium that they do today? Only time will tell.