The Analytics India Attrition Report is an annual study that delves into the attrition trends to provide a comprehensive view of the changing landscape of attrition
in India’s analytics industry. The report looks at the attrition rates across several categories, including geographies, company sizes, years of experience, industries, and cities.
The stability of companies is indicated, among other things, by their ability to maintain a reasonable attrition rate. The attrition rate of Indian firms, especially in
the IT or Analytics domain, has been very high in the last couple of years. However, because of the pandemic and the resulting uncertainties in the job markets, India’s attrition rate dropped significantly in 2020. Certain trends of attrition changed throughout the pandemic. This was because of Analytics professionals taking a lower risk switching jobs and the rising lay-offs amid the pandemic that affected everyone differently.
The Indian industry has faced higher attrition for a long time. This is a significant concern in the Analytics industry, especially since data scientists’ availability has been called out as the biggest challenge facing organisations in previous years. While attrition is considered suitable for a company to an extent, a very high attrition rate is usually a symptom of a larger, systemic problem within the organisation and has a significant impact on a firm’s revenue and productivity loss and creates bottlenecks.
There are several reasons for attrition, and they depend on the industry or the sector. One of the major reasons for the Analytics industry is its fast-paced nature that presents professionals with many new innovations and opportunities, resulting
in higher attrition. The main reason employees leave firms is to seek something more or better than what they already have – like compensation, working condition, or responsibilities. In the last couple of years, this rate has really gone up as almost one in three Analytics professionals left the company in 2019.
However, 2020 changed everything as the COVID-19 pandemic hit the world and disrupted supply chains. This hampered productivity, and as a result, the job market shrunk. The Indian IT sector was no exception, as companies started
to freeze hirings. A survey conducted by the International Institute of Analytics in the early days of the pandemic indicated that around 22% of companies froze recruitment. Around 5% also instituted “substantial” salary cuts, hiring freezes, or layoffs, while nearly 16% instituted “some” measures in response to COVID-19. Another survey by TDWI (Transforming Data With Intelligence), conducted in May 2020, recorded 13% of Analytics professionals claiming furloughs or lay-offs in their companies and 40% claiming their firms have frozen hiring of data and analytics professionals.
In this market of uncertainty, analytics professionals chose not to leave jobs. According to the Workforce Increment Trends Survey, 2021 by Deloitte found that voluntary attrition reduced from 14.4% in 2019 to 12.1% in 2020 across India. Simultaneously, the layoffs increased the involuntary attritions from 3.1% in 2019 to 4.0% in 2020. According to the survey, of which only Phase-I was conducted, involuntary attrition increased the most in the IT and services sectors, whereas voluntary attrition reduced across sectors.
Table of Content
- Executive Summary
- Scope & Methodology
- Key Takeaways
- Attrition in India
- Attrition Rate by Company Size
- Attrition Rate by Year of Experience
- Attrition Rate by Industry
- Attrition Rate by Cities
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