Small towns to see more hiring in telecom

sector: Experts

PTI Apr 13, 2014, 02.39PM IST

MUMBAI, APR 13:  

 With telecom majors focusing on decentralisation of their networks by setting up customer centre desks in tier-II and III cities, hiring in rural areas will continue to grow by up to 20 per cent, say experts.

“Tier-II and III cities offer feasibility in hiring talent at a much lower cost and retention is also comparatively higher. Though ready talent is not available in these areas, it is not difficult to train them in line with the requirements of the company. So, hiring will continue to grow in these areas...minimum 15-20 per cent higher than last year,” executive search firm GlobalHunt’s Managing Director Sunil Goel told PTI here.

He said hiring in tier-II and III cities provides a wider range of availability and decentralised approach, which suits the business continuity plan.

It also helps the company in managing a lower recurring cost in increments and physical infrastructure is also available at a much lesser cost as compared to the metros, he said.

Moreover, retention of employees is also becoming one of the major challenges in metro cities as high attrition inflicts a lot of recruitment, training and development cost on the companies, he said.

Industries like insurance and healthcare have also been following similar routes, he added.

Echoing similar views, another industry expert opined that the need for skilled professionals in tier-II and III cities has seen a significant surge to build the skill gap.

“India is a big market and also one of the most competitive in the domain with multiple players in the fray. About 50-60 per cent of the subscribers come from non-metros, including tier-II and III cities and those are also one of the focused revenue markets for the companies,” he said.

Randstad India CEO Moorthy K Uppaluri said with the overheating of the urban market segment, telecom companies have been pro-actively building infrastructure in rural areas over the past few years to expand their subscriber base, widen distribution networks, boost profit margins and compete more effectively.

“Market estimates show that the share of rural subscribers has increased at an annual rate of 15-20 per cent over the past year. With these developments, we believe that the telecom sector is poised to grow in tier-II and III cities and expect hiring to go up by about 10 per cent this year and continue to gain momentum in future,” he said.

Given the challenge of skills gaps, he said most firms hold periodic and structured training to equip and update their workforce with the necessary skills that will help them perform their job efficiently.

“As business potential in the rural markets is growing, we are also witnessing a similar trend in the FMCG, banking, financial services and insurance (BFSI) industries, consumer durables, education and retail segments,” he added.

News URL's-: 

The Hindu Business Line- : http://www.thehindubusinessline.com/news/small-towns-to-see-more-hiring-in-telecom-sector-experts/article5907865.ece

The Economic Times -:http://articles.economictimes.indiatimes.com/2014-04-13/news/49098081_1_tier-ii-telecom-sector-more-hiring

The Indian Express-: http://indianexpress.com/article/business/business-others/small-towns-to-see-more-hiring-in-telecom-sector-experts/