June-2020 Forward to a Friend


K. Shyam Sundar Reddy
MD, TechStar Group
    Future of staffing and its impact in 2020 (including the time of Covid19)

Corona is a global pandemic today that has engulfed the entire world and has shattered many large economies in a blink of an eye! Indeed, there will be massive job losses across different sectors in India and across the international borders if the corona virus impact continues for few more months. The current shut the shop situation to prevent the spread of Corona can set back our economy by 21 years! COVID-19 has severely impacted many sectors like the aviation, travel & tourism, hospitality, retail, manufacturing and automotive sectors, which are actually the key indicators of any economy followed by our close to heart IT Sector. This has brought on us a virtual, unforeseen recession for sure. As we have already been experiencing there is a kind of surge in the prices of the bare essentials and inflation is inevitable all around us.

COVID-19 has severely impacted many sectors like the aviation, travel & tourism, hospitality, retail, manufacturing and automotive sectors, which are actually the key indicators of any economy followed by our close to heart IT Sector. This has brought on us a virtual, unforeseen recession for sure. As we have already been experiencing there is a kind of surge in the prices of the bare essentials and inflation is inevitable all around us.

In the IT Sector, we foresee some brutal job cuts, in one lens where we expect the senior most positions to be swallowed first under the wrench of cost cutting and re-structuring, on the other side millions of entry to mid level roles will also get adversely impacted as onboardings will be stalled, budget approvals will be delayed and in the haste of optimum utilization of resources we might over churn the left over manpower.

Many employers are taking a wait-and-watch approach before making any decisions regarding the upcoming hirings. There could be some delays in hiring both from the process and cost management perspective. Organizations might want to wait till things go back to normal and they resume working from office before holding discussions and rolling out the budgets for new hiring.

However, there could be some exponential hiring in tertiary sectors like E-Commerce and E-Logistics and most importantly Life Sciences & HealthCare business will definitely attract substantial growth as most of the government funding will be channelized towards them.

With the immense pressure of shrink the shrimp, IT Staffing will face some drastic impacts and I personally feel and appeal that it is okay if we halt off any new hiring but we all should try to retain the jobs of the contractors as much as possible.

IT Staffing will evolve for sure & we can witness much brighter future. Economic volatility is a reality today and organizations need to be more flexible to accommodate market changes. The staffing market in India is already large considering the population in the labor pool and is poised for rapid growth. In the years to come, Indian staffing market will be the largest in the world & the temporary workforce is likely to account for 10% of India’s formal sector employment by 2025. India has one of the largest flexible staffing workforce numbers in the world, next only to China and the US.

We all must be ready to run a sprint race once the lockdown is over to try and recover for the losses as much as possible and we all must be mindful of the fact that the Corona-Crash is so hard that no one alone can combat it, we all will need immense collaboration and never before compassion to get our lives & economies to normalcy.

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