We must make the IT and business services industry sexy again

HFS Research conducted its first-ever employee study focusing on the IT and business services industry, garnering responses from 1,800 employees. Nearly 90% of employees are still passionate about the difference that IT and business services can make to the Global 2000 enterprises, but a majority feel that the industry needs a facelift.

Ian Barkin, entrepreneur and speaker on all things “Future of Work,” joined Phil Fersht and Saurabh Gupta on stage to discuss how to make the IT and business services industry sexy again for our top talent.

Hiring and retaining quality staff are among the top challenges that could adversely impact an organization’s strategic goals

Saurabh Gupta opened the session by announcing the launch of the first-ever employee study focused on the IT and business services industry. HFS Research has surveyed 1,800 full-time employees in the IT and business services industry across the leading 16 services providers in the US, the UK, India, the Philippines, Western Europe, and Central Europe.

We conducted this flagship study on the back of the findings from our recent HFS Pulse Survey, which revealed that hiring and retaining quality staff is now among the top internal challenges in Exhibit 1 that could adversely impact an organization’s strategic goals. Organizations have finally realized that the talent and skills needed to address their challenges and growth opportunities are likely in short supply.

Exhibit 1: Hiring and retaining quality staff are the top two challenges that could adversely impact an organization’s strategic goals

Sample: 602 executives across Global 2000 enterprises, H1 2022
Source: HFS Research, 2022

A hard reality check: The IT and business services industry is no longer the employees’ first choice

Saurabh Gupta gave a sneak peek of the employee study and flagged that only 11% of employees in Exhibit 2 consider their current employer as their “dream employer.” The IT and business services industry seems to have lost its mojo, and employees are now looking at start-ups (21%), and technology product companies or SaaS companies (18%) as “the place to be” for growth and innovation. Twenty-one percent (21%) of employees are actually considering leaving their jobs to start their own businesses and be their own bosses.

Exhibit 2: The IT and business services industry today is no longer the top choice; only 11% consider their current employer as the “dream employer”

Sample: 1,800 employees across leading IT and business service providers, September 2022
Source: HFS Research, 2022

Employees are looking out for their own interests, and company loyalty seems like an outdated concept

One stand-out finding Phil Fersht highlighted was that nearly 50% of employees in Exhibit 3 are actively seeking an opportunity to progress in their careers. More than two-thirds of employees (69%) would be willing to quit their current jobs if the right opportunity appeared. If employers had invested as much time and effort in instituting employee loyalty as they have in building customer loyalty, we would probably not be in this situation.

The employee NPS of IT and business services is negative. To make the industry sexy again, we need honest discussions and new approaches.

— Saurabh Gupta, President of Research and Advisory, HFS Research

Exhibit 3: Seven out of ten employees will leave their current employer if the right opportunity presents itself

Sample: 1,800 employees across leading IT and business service providers, September 2022
Source: HFS Research, 2022

The good news is that employees are still passionate about the difference the services industry can make—but the industry needs a serious facelift

Nearly 90% of employees in Exhibit 4 are still passionate about the IT and business services industry, a sign that the industry has not completely lost its soul. Employees still firmly believe that the industry can help Global 2000 enterprises drive innovation, improve stakeholder experience, and support their digital transformation journey. However, 54% of employees have flagged that a serious change is needed, and leaders must shift away from their old habits.

The services industry has grown too fast in the last decade and forgotten the importance of individuals along the way. Employees have been categorized into buckets and revenue streams, and this needs to change.

— Phil Fersht, CEO and Chief Analyst, HFS Research

Exhibit 4: Nearly 90% of employees are still passionate about the IT and business services industry, but a majority feel that the industry needs a facelift

Sample: 1,800 employees across leading IT and business service providers, September 2022
Source: HFS Research, 2022

One key change can make the services industry sexy again: Push hard to move the primary revenue model from “effort” to “value”

During our HFS Super Summit, we asked the delegates to shed some light on how to make the industry sexy again. More than half of the delegates (52%) in Exhibit 5 believe that driving a revenue model based on “value” instead of “effort” will make their jobs more challenging and rewarding. Changing the age-old master-servant conversation between enterprise clients and service providers to one of a common purpose to create mutual value might be the key to revitalizing the services industry.

Exhibit 5: More than half of the delegates attending the session believe that implementing a revenue model based on “value” will make their jobs more rewarding

Sample: 56 delegates, HFS Super Summit, September 2022
Source: HFS Research, 2022

The Bottom Line: Making the IT and business services industry sexy again is definitely possible, but the change has to be modeled from the top

The IT and business services industry is no longer the number one choice for employees, and company loyalty is dead, a victim of the “war for talent.” Our study also revealed that employees are still passionate about the difference the services industry can make to Global 2000 enterprises. But they need leaders who can build a purpose-led culture to inspire their employees, where innovation is at the center of the growth strategy.