How can India turn Attrition crisis into an Opportunity.

India today has a distinct identity as a software superpower. With the world's second largest pool of English-speaking scientific and technical professionals, India boasts of a high percentage growth. As the software industry increasingly becomes a major driver of the nation's economy and policy makers devise ways to fuel its growth, India's software industry is poised for massive expansion. According to a NASSCOM-McKinsey report, annual revenue projections for India’s IT industry in 2008 are US $ 87 billion and market openings are emerging across four broad sectors, IT services, software products, IT enabled services, and e-businesses thus creating a number of opportunities for Indian companies. In addition to the export market, all of these segments have a domestic market component as well.

With such a high growth and volumes being created, it becomes evident that to fuel the phenomenal growth manpower will be required, and that too in big numbers. As Indian industry has moved from the basic IT related services to more complex and high skilled services, the demand for quality manpower has gone up. Though Indian education system produces more than quarter of a million professionals annually, only quarter of that number is employable. With this gap in the demand and the Indian education system attrition has become a reason for concern.

Attrition rates range from 12% points to 33% points. An organization which invests heavily in its employees to train for the job has to invest even more to retain them as demand for the skill sets are high and with the advent of new IT services companies; they are in demand at a higher wage rate. Therefore Indian IT Services organizations are offering ESOPS, Work Life Balance Programs, Self Development Modules, Education Programs and various such incentives to retain their employees. In the long run though , the high demand for the quality manpower and low supply of the same will only raise the wages and salaries and not solve the problem of acute shortage.

As a result it becomes important that Indian IT Industry partners with the government to equip the Indian Education System with the knowledge and the facilities to upgrade the level of education over a targeted period of time. In no time the crisis could be turned into an advantage. With this possible initiative multiplier effect will take place and affect the other areas of economy as it has happened before. Imagine the force India can become with the improved education system and the possibility of the value creation which lies ahead.