Customers of IT service providers are feeling the pinch as tech firms wrestle with the growing attrition rate in their industry, a result of the sudden surge in demand for digital transformation services stoked by the Covid-19 pandemic.
Climbing attrition potentially reduces the quality of service and delays software development projects in addition to increasing the cost of IT services, according to a study by Everest Group.
Everest Group's Pranati Dave discusses how “…enterprises’ overall satisfaction with their tech service providers improved again for the second year in a row, which is good news for providers, indicating they have fared well…” Read on https://t.co/xCVEvdwBvC
— Everest Group (@EverestGroup) July 6, 2022
Clients are overall happy with tech service providers, but talent management is the “biggest pain point”, the report noted.
“We found that enterprises’ overall satisfaction with their technology service providers improved again for the second year in a row, which is good news for providers, indicating they have fared well in terms of managing the implications of the pandemic and post-pandemic world,” said Pranati Dave, practice director at Everest Group.
“However, talent management was cited as a pain point by a majority of the executives we interviewed and therefore is an important area of improvement that service providers must address,” he added.
To overcome the impediment, Everest suggested that IT service providers take on board an additional team of skilled workers who can take over projects in the wake of attrition.
In other words, the research urged technology companies to embark on large-scale hiring of fresh graduates even while accelerating upskilling of the existing staff.
Talent mapping and effective replacement of talent are necessary to regain the confidence of clients, according to the report.