Make Smarter Talent Acquisition Decisions with Our Latest Insights on India's Job Trends Download Now!
Website Banners From-Profit-to-Loss How-Ageing-Vacancies-Affect-IT-Company-Revenues

From Profit to Loss: How Aging Vacancies Affect IT Company Revenues

Featured Image From-Profit-to-Loss How-Ageing-Vacancies-Affect-IT-Company-Revenues
By Manish Gupta

August 11, 2023


min read


sign up and join the careers circle to unlock this article

Find more curated content by Taggd

sign up sign in


In the rapidly evolving IT industry, maintaining a competitive edge is essential for sustained success and profitability– more so in the global economic headwinds of today. However, many IT companies grapple with a hidden obstacle that undermines their profitability– aging vacancies. 

Aging vacancies refer to positions or roles for which suitable candidates are not hired for a long period of time. When crucial positions remain unfilled for extended periods, the consequences can ripple through an organization, and may lead to substantial financial setbacks and operational challenges.

In this article, we delve into the adverse impact of aging positions on IT companies and explore how strategic recruitment process outsourcing and tech recruiting platforms, like Taggd, can help IT companies overcome this challenge.

Why Do Positions In IT Companies Stay Vacant?

The IT sector’s dynamic and expansive nature requires candidates from various specialties and backgrounds. The IT hiring landscape thus is complex so to say, and here are a few prominent reasons why positions in the IT industry age:

  1. Lack of access to quality talent: The evolving tech landscape has significantly increased the requirement for candidates with niche skills while the supply remains severely constrained. 
  2. Inefficient hiring process: Lengthy and poorly-designed recruitment processes contribute to further delays in filling positions. In some cases, budget constraints or a short-staffed talent acquisition team adversely impact the interview process in terms of candidate engagement and drive away potential candidates.
  3. Demand in non-IT sectors: The rising demand for tech talent in conventionally non-IT industries like automobile, pharmaceuticals, and manufacturing has impacted the availability of suitable candidates for tech companies, thereby leading to aging vacancies.

Impact of Aging Positions

  1. Increased burnout and reduced productivity: Vacant positions for a long time can result in increased workloads for existing employees at IT companies, leading to increased probabilities of burnout among existing workforce. Over time, this pressure can start impacting employee creativity and innovation, hindering the company’s ability to stay ahead of the IT industry’s trends and advancements 2
  2. .Low morale and high chances of turnover: Aging vacancies might lead the existing employees to question why no one wants to join their employer, causing doubts about their career growth at the company and dampening their morale. It may also spill over to employees leaving the company as soon as they find opportunities at some other IT companies
  3. Missed business opportunities: In the IT field, bench strength is important to execute large-scale projects and stay ahead of the curve. While the present IT hiring sentiment  is not entirely growth-optimistic, hiring has not completely paused at IT companies either. Vacancies in key roles can impede the company’s ability to seize new business opportunities, such as pursuing innovative projects or expanding into emerging markets that can have long term ramifications on the company’s growth trajectory.
  4. Customer dissatisfaction: A stretched workforce increases the chances of deadline delays which may negatively impact the overall project. Delays in delivering projects or providing timely customer support due to understaffing can lead to dissatisfaction among clients. Satisfied clients are the backbone of any IT company’s success, and negative feedback or lost contracts can tarnish the company’s reputation and bottom line.
  5. Increased costs: Contrary to the belief that having one employee less saves money, it’s actually the opposite. Therefore, keeping a billable role vacant effectively leads to revenue shortfall, and consequently less profit too. 

How Can Taggd Help?

As India’s leading recruitment process outsourcing platform, Taggd has extensive experience in the IT hiring domain spanning over decades, with proven expertise in helping several IT majors build a dynamic workforce.

  1. Robust talent pipeline: Taggd has an active talent pool of over 5 lakh candidates across 850+ roles along with their standardized profiles for easier candidate vetting and selection. Furthermore, our management team constantly engages with candidates through our Career Circles initiative– aimed at helping candidates find the right jobs, which also ensures that our client always has ready access to job-ready candidates.
  2. Industry insights and trends forecasting: As a company, we truly believe in the power of data-based decision-making and regularly collaborate with leading institutions such as Confederation of Indian Industry (CII) to conduct nation-wide surveys and research to forecast future hiring trends and employee expectations. This places us in a unique position to give our clients a competitive edge while designing compensation packages and job descriptions.
  3. Extension of your hiring team: Our tech hiring platform is designed to ensure that our clients receive end-to-end recruitment and onboarding services from professionals who recruit in the IT industry day in, day out. This gives you access to a seasoned hiring team that can be scaled up and down as per your needs, without any fixed costs.

Read How Taggd Ramped Up Hiring for an AI Digital Engineering Company by 250% Within 6 Months!


In addition to the increase in the possibility of turnover among existing employees, the hidden cost of aging positions can severely affect IT services companies by revenue terms. At Taggd, we believe in delivering results by closely working with our clients to help them recruit candidates who can assist them in fulfilling their long-term growth goals!   

By Manish Gupta

Chief Growth Officer