Attrition is the biggest challenge to the IT industry. The attrition levels in the industry are alarming not only to HR professionals and project managers but also to management experts and academicians. In fact, IT’s attrition levels have prompted professionals to research allied areas like work culture and job satisfaction. The financial losses to companies due to attrition are very high.
HR professionals and project managers are doing their best to innovate and retain employees. The fact also remains that the aspiration levels of the present generation of employees have increased. Hence, they are not used to working in one organization throughout their career or even for a decade, unlike the earlier generation, and are constantly in search of better job opportunities and career growth.
The attrition levels of IT professionals negatively impact project deadlines and customer satisfaction levels. Increasing the salaries of IT professionals and introducing better welfare measures have not been always successful. Even after the salary is matched to industry standards, competitors are ready to poach them for an extra price. There seems to be no end to this vicious circle.
IT staffing services has proven to be a boon to companies battling with attrition. Temporary IT staffing helps to meet sudden demands for IT resources requirement. Since these employees are provided to them by manpower consultants, there are no costs incurred on hiring, training, and retaining them. Apart from the phenomenal financial benefits, companies have also been able to speedily execute projects and address the changing requirements easily. Moreover, the temporary staff are trained in different IT operating environments (by virtue of their experience of working in several organizations) and hence companies can avail their service to meet project needs of different nature.
There is a drawback to this engagement model. There is no accountability. Manpower consultants charge companies for projects and for the resources supplied by them but do not accept any responsibility for their performance. Due to the lack of commitment, these employees may leave more quickly than the employees of clients. There are also dangers of loss of business control. Managing the employees is altogether another issue. If these employees quit at short notice, it can even result in a loss of business continuity and project delays. Additional resources may not be immediately available. In the absence of proper backup plans it can even result in project failures and loss of reputation.
Another engagement model that is worth exploring is the co-sourcing mode of engagement. In this engagement model, the IT supplier provides resources and manages them. There is a single point of accountability. There is no loss of business control and these employees are directly accountable to the IT supplier. Since these employees work with the in-house team, they can help to build and benchmark the best practices, in the course of the project. The IT supplier also deputes excess resources during the peaks of demand and rolls them back, when not required. Does co-sourcing sound to be the perfect model to combat attrition? Make your choice, now.