Understanding telecom hiring trends and workforce transformation

Hiring strategies in the telecom sector have evolved from focusing on headcount to emphasising productivity, quality, and upskilling. With more investment in training, improved pay structures, and clearer career pathways, contractual roles are now seen as viable career starts. 

Balasubramanian A, Senior Vice President, TeamLease Services, spoke with V&D where he outlined how the telecom sector is witnessing renewed growth driven by 5G adoption, rural connectivity, and increasing demand for skilled talent. Here are some excerpts from the interaction

What is the current hiring strategy of telecom firms. Could you highlight that for us?

When we talk about the telecom sector, we can either refer to just the telecom operators or to the wider ecosystem, which includes network infrastructure providers, hardware and software suppliers, and the operators themselves.

At present, the profitability across the telecom ecosystem is improving, if the Q1 financial results are any indication. This gives companies a bit of breathing room to invest, and we are indeed seeing that happening now. Around this festive season, there’s noticeable expansion. There had been some slowdown since the second half of last year and into Q1, but activity in Q2 has picked up significantly.

We’re witnessing demand not only for frontline sales roles but also for engineers and support staff such as wiremen. The growth is not limited to metros and Tier 1 cities, Tier 2 and Tier 3 locations are also experiencing rising demand for data services such as broadband and fibre connectivity.

Earlier, operators struggled to monetise 5G due to limited viable use cases. But with demand increasing, they’re now managing much better. The ecosystem’s prosperity is essentially a reflection of how well the operators themselves are performing, and that success is trickling down.

Overall, Q3 looks promising, certainly better than what we’ve seen over the past nine months.

Since you mentioned Tier 2 and Tier 3 cities, how is the telecom industry aligning its workforce with rapidly evolving technology and customer expectations?

The industry increasingly recognises the importance of a skilled and trained workforce, rather than simply having people on the ground. A few years ago, the focus was on coverage, having as many people as possible in the right locations. Now, the emphasis has shifted to extraction, that is, productivity and efficiency.

Companies are investing more in their people. Frontline workers are paid better than before, many earn upwards of Rs 30,000 per month, particularly in engineering roles. Even sales professionals enjoy attractive incentives tied to conversions. Training and upskilling initiatives have also increased significantly compared to a few years ago.

Today, it’s not merely about selling a product, it’s about selling a solution or even a lifestyle. That’s the broader shift we’re witnessing in this space.

You mentioned 5G earlier. Do you have any data or insights on how firms are aligning their workforce with the 5G rollout or rural connectivity initiatives?

Yes. We’re seeing an uptick of roughly 15–20%, sometimes even higher in certain Tier 2 and Tier 3 locations,  compared to last year. This reflects both the growing number of roles and the higher skill requirements expected at the time of deployment or in the initial phase post-deployment.

Has the pace of contractual hiring in the telecom industry changed in recent years?

Yes. The years 2021 through 2023 were particularly strong due to the post-pandemic technology boom. However, from late 2023 into early 2024, there was a slowdown, largely linked to challenges in monetising 5G.

That said, we’re now seeing recovery. Earlier, the focus was purely on market coverage, “as many people as possible, as cheaply as possible.” Now, the approach is quality over quantity. Companies are willing to pay a bit more for the right people.

This adjustment phase caused a temporary lull over the past few quarters, but green shoots are visible again. Q3 should be quite positive.

What proportion of the contractual telecom workforce falls within the 18–32 age group?

Bala A: A very large proportion, the majority, in fact. That’s been consistent over the years. Contractual employment often serves as an entry point into permanent roles, as many firms absorb top performers into their core workforce over time.

As a result, the average age of the permanent workforce tends to be higher, since contractual employment acts as a pipeline for future full-time staff.

You touched on upskilling earlier. Could you share some examples or data on how career progression and training programmes have improved productivity in recent years?

Productivity can be measured in several ways, revenue generated, cases handled, service calls completed, and so on. Across these parameters, we’ve seen improvement. But more notably, attrition has come down.

For technical profiles, service technicians, engineers, wiremen, monthly attrition is now around 3–4%, lower than before. In sales roles, attrition has dropped to single digits (around 8–9%) per month, compared with over 10% previously.

This is partly because hiring has slowed, but also because people now feel more secure in their roles. Even contractual employees see career pathways. Many companies offer clear progression plans, for instance, promotion within the contractual framework before moving to permanent employment.

This clarity has motivated workers and improved retention. We’ve seen numerous success stories of individuals moving up the ladder over time.

Coming to TeamLease, what role does the company play in addressing talent challenges and fostering growth within the telecom sector?

We cater to all types of profiles within the telecom ecosystem, from infrastructure providers and hardware/software suppliers to operators themselves.

If we take the broadband segment specifically, for instance, we work with frontline sales representatives, engineers, wiremen, technicians, and maintenance staff. Salaries vary widely, from minimum wage levels up to Rs 35,000–Rs 40,000 plus incentives, depending on experience, skills, and performance.

What key trends do you believe will shape the future of the telecom industry?

It’s difficult to predict with certainty, but a few patterns are clear.

Earlier, there was a direct correlation between manpower and output. Now, companies are realising that productivity doesn’t always scale linearly with headcount. Technology acts as a forcemultiplier, enabling more output with the same, or even fewer, people.

The future of work, especially in telecom, is about productivity, not just people. The ongoing wave of AI and automation is accelerating this shift. Companies are automating workflows, not to reduce headcount, but to raise productivity.

We’ve also seen salary levels steadily rising in line with this focus on quality and performance.

How are companies preparing to adapt to these changes?

Most have already taken steps in the right direction, but no one has it completely figured out. Much depends on how effectively these initiatives translate on the ground.

The biggest challenge is cultural transformation,  ensuring alignment from the head office right down to field operations. This isn’t an overnight change; it’s a process. But across the board, there’s now a shared understanding that productivity is the key differentiator. How each company extracts that productivity is still evolving.

What advice would you offer to individuals aspiring to build a career in the telecom sector?

First, focus on developing the right skills. Being a graduate doesn’t automatically make you employable,  employers are now assessing skill sets directly.

Second, cultivate the right mindset. Sales and service roles demand very different temperaments, both are valuable, but it’s important to know which suits you best.

Third, don’t dismiss contractual roles. Contractual employment has become far more mainstream,  the number of contractual workers in India has nearly doubled in six or seven years, from about 3–3.5 million to over 6.5–7 million. These roles can be excellent stepping stones for long-term careers.