Indian IT firms spending Rs 1.97 crore on average to train employees every year

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India’s IT and IT-BPM services sector is investing big in employee training and skilling, with an annual average investment of about Rs 1.97 crore a company across sizes. Around 68 percent of the companies also said they were closely involved in the development of employees across levels, India’s Best Workplaces in IT & IT-BPM 2023 report released on November 30 said.

The findings come at a time when the IT sector is investing heavily in skilling employees in artificial intelligence (AI), generative AI and cloud computing skills. Companies have started sharing quarterly updates on employees whose training has been completed, targets of workforces to be trained by the end of the financial year and more.

Accenture and Wipro were among the top 25 in India’s Best Workplaces in IT & IT-BPM 2023 listing. The list is split — 1-25 and then 26-50, with names of the firms arranged in alphabetic order — A-Z —  on both occasions.

The companies were picked based on how they prioritised work culture, which has become important to improve productivity and employee retention, as they continue to go slow on hiring amid a challenging demand environment.

Recently, some IT companies laid off employees or cut salaries to trim expenses, which led to a decline in employee morale and satisfaction, the report said.

Other companies in the Top 25 include VOIS, Akamai Technologies, Atlassian, Blue Yonder, Cadence Design Systems, CGI Information Systems and Management, Consultants, Cisco Systems, Encora Innovation Labs and H & R Block.

Infosys and Happiest Minds, too, featured in the list but in the "top 26- 50" rankings.

The report also highlights several aspects of employee well-being, a prominent theme in the 2023 report was burnout. According to the survey, the burnout risk continues to remain a concern, affecting 27 percent of employees in large companies, 3 percent higher than their mid-sized counterparts.

“Female senior managers in particular experience a 5 percent higher burnout rate than male counterparts. The trend draws the importance of maintaining a delicate balance between growth and employee well-being,” the report said.

Yeshasvini Ramaswamy, CEO, Great Place To Work India, said “India's IT industry contributes a staggering 7.5 percent towards the country's gross domestic product (GDP). This statistic not only underscores the economic significance of this sector but also showcases the pivotal role each organization plays in shaping the trajectory of our nation."

The emergence and robust contribution of cutting-edge technologies such as AI and deep tech in the Indian IT sector, as of 2023, further accentuated the industry's status as a hub of talent and innovation with global delivery capabilities, Ramaswamy said.

“Our report, India's Best Workplaces in IT & IT-BPM, highlights the vibrancy and resilience of this industry. With over 1.8 million employee voices contributing to our study, trends that will shape our future of work continue to be myriad,” she added.

To address the challenges, the report suggested ‘Workplace Ikigai’ as a holistic solution to enable individuals to align their “personal passions, cultivate meaningful relationships, embody exceptional leadership, and create an enduring impact”.

Around 83 percent of the best workplaces invest mindfully in their employees' growth. leadership excellence, despite being the lowest-scoring lever in Workplace Ikigai, shows an upward trend, the report said.