Indian firms face external disruptions: What latest report says about persistent challenges

A significant majority of Indian businesses report that external disruptions such as climate shocks, infrastructure challenges and public health outbreaks are impacting their ability to attract and retain talent, according to a report released on Tuesday.

According to the Adecco India External Disruptions and Workforce Productivity Report, almost 50 percent of respondents reported that disruptions have already impacted their ability to attract and retain talent; This signaled that what started as a productivity issue had become a labor market concern.

The report’s findings are based on responses from 1,044 employers in Delhi-NCR, Mumbai, Chennai, Hyderabad and Bengaluru.

According to the report, nearly 97 per cent of Indian businesses now experience external disruptions such as climate shocks, infrastructure pressures and public health outbreaks as a constant operational reality.

The report found that the impact of these disruptions for organizations ranged from lower productivity, increased absenteeism and temporary closures to increased operational costs and recruitment difficulties.

“India’s employers are no longer just managing disruption; they are redefining flexibility in one of the world’s most complex labor markets. With 95 per cent of employers prioritizing business continuity and demoralization already affecting major hubs such as Bengaluru (48 per cent) and Hyderabad (44 per cent), the human cost of disruption is becoming impossible to ignore.”

“While one in two employers report difficulty attracting talent, a quarter say the hiring impact is severe, with the pressure most severe in Delhi NCR’s services and IT sectors,” said Sunil Chemankotil, Country Manager, Adecco India. he said.

Critically, he said, 32 percent of employers still lack visibility into which workforce segments face the highest risk, accelerating the need for stronger workforce intelligence, mental health support, flexible working models and wellness infrastructure as key continuity strategies.

The next phase of India’s workforce growth will depend on how effectively organizations transform ambition into resilience, he added.

According to the report, 30-35 percent of the remote workforce is in World War II. and III. Reverse migration has accelerated in recent years as people choose to live and work in tier-1 cities.

The technology sector is leading this change; Demand for remote and hybrid roles in non-metro locations is growing by 30 per cent on an annual basis, followed by sectors like BFSI (20-25 per cent), Healthcare and Life Sciences (15-20 per cent) and e-commerce and Retail (15-18 per cent).

The report also found that this trend is increasingly being driven by younger professionals, with 50-55 percent of those under 35 citing better quality of life and being closer to family as more important factors than higher salaries in metropolitan cities when deciding to move.