News »Browse Articles »
HR, finance salary levels increase in IT Industry
0
HR, finance salary levels increase in IT Industry
MUMBAI: HR and finance executives of IT companies are giving stiff competition to the software engineers -- in terms of rising level of attrition and talent shortage.
Industry experts and players say that while the attrition for IT professionals has touched a little less than 18 per cent for the industry, the same for support functions is as high as 20 per cent.
Traditionally, more attention was given to core functions as they were seen as direct source of revenue than to support functions, referred as cost centres. But the challenge now is to retain and find suitable people for these support functions, as they are vital to an organisation.
This shortage of functional staff seems to have a significant impact on the salaries. “There would be more rationalisation of salary levels for functions like HR, finance or administration within the IT industry,” says Teamlease vice-president Sampat Shetty. A few experts even point out that while the salary levels for IT professionals is seen to be dropping, a talent crunch among support functions would see their salary levels rise.
Ashank Desai, founder Mastek, an IT solutions and services company, says that the reason behind it is that the economy has opened many avenues for people in these functions. “The reason for shortage is due to lack of finishing schools for functions like HR and finance since the IT industry has been the focus,” says Infosys director-HR Mohandas Pai.
Last year, 18 per centof the new hires at Infosys were for support function, but this year the figure may come down to 5 per cent. Pratik Kumar, corporate vice president, HR, Wipro is not perturbed by the single digit attrition level in support functions at Wipro. On a more cautious note he says: “HR is becoming a global industry. There are more avenues beyond corporate HR.”
Though the manpower challenges in support functions are a serious issue they are a greater threat in SME IT companies.
In larger companies, the protocols are structured and there are more automated systems and processes. For instance, a mid sized IT company on an average will have an HR manager to employee’s ratio of 1:10. Says Sampat Shetty: “With attrition in the mainline headcount, now the industry is also seeing a ripple effect in the support functions.”
Source:
http://www.jobsnaps.com/mba/hrfinance.htm
Industry experts and players say that while the attrition for IT professionals has touched a little less than 18 per cent for the industry, the same for support functions is as high as 20 per cent.
Traditionally, more attention was given to core functions as they were seen as direct source of revenue than to support functions, referred as cost centres. But the challenge now is to retain and find suitable people for these support functions, as they are vital to an organisation.
This shortage of functional staff seems to have a significant impact on the salaries. “There would be more rationalisation of salary levels for functions like HR, finance or administration within the IT industry,” says Teamlease vice-president Sampat Shetty. A few experts even point out that while the salary levels for IT professionals is seen to be dropping, a talent crunch among support functions would see their salary levels rise.
Ashank Desai, founder Mastek, an IT solutions and services company, says that the reason behind it is that the economy has opened many avenues for people in these functions. “The reason for shortage is due to lack of finishing schools for functions like HR and finance since the IT industry has been the focus,” says Infosys director-HR Mohandas Pai.
Last year, 18 per centof the new hires at Infosys were for support function, but this year the figure may come down to 5 per cent. Pratik Kumar, corporate vice president, HR, Wipro is not perturbed by the single digit attrition level in support functions at Wipro. On a more cautious note he says: “HR is becoming a global industry. There are more avenues beyond corporate HR.”
Though the manpower challenges in support functions are a serious issue they are a greater threat in SME IT companies.
In larger companies, the protocols are structured and there are more automated systems and processes. For instance, a mid sized IT company on an average will have an HR manager to employee’s ratio of 1:10. Says Sampat Shetty: “With attrition in the mainline headcount, now the industry is also seeing a ripple effect in the support functions.”
Source:
http://www.jobsnaps.com/mba/hrfinance.htm
