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 issues, and public health outbreaks, are impacting their ability to attract and retain talent, according to a report released on Tuesday.

Nearly 50 per cent reported that disruptions already affect their ability to attract and retain talent, signalling that what began as a productivity issue has become a labour market concern, the Adecco India External Disruptions and Workforce Productivity Report said.

The findings of the report are based on responses from 1,044 employers across Delhi-NCR, Mumbai, Chennai, Hyderabad and Bengaluru.

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

The report revealed that for organisations, the impact from these disruptions ranges from lower productivity, rising absenteeism and temporary shutdowns to increased operational costs and hiring strain.

"India's employers are no longer just managing disruption; they are redefining resilience in one of the world's most complex workforce markets. With 95 per cent of employers prioritising business continuity, and morale decline already impacting major hubs like Bengaluru (48 per cent) and Hyderabad (44 per cent), the human cost of disruption is becoming impossible to ignore.

"One in two employers report talent attraction challenges, while one in four cite severe hiring impact, with pressure most acute in Delhi NCR's services and IT sectors," Adecco India Country Manager Sunil Chemankotil said.

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

India's next phase of workforce growth will depend on how effectively organisations translate ambition into resilience, he added.

According to the report, reverse migration has accelerated in recent years, with 30-35 per cent of the remote workforce choosing to live and work from tier II and III cities.

This shift is led by the technology sector, with demand for remote and hybrid roles in non-metro locations growing 30 per cent year-on-year, 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 being driven increasingly by younger professionals, with 50-55 per cent of those under 35 citing better quality of life and closer proximity to family as more important factors than higher salaries in metropolitan cities when deciding to relocate.