17% Accenture Employees Resigned In 90 Days: Reason Why Attrition Rate Is Falling?
Recent months have been tumultuous for Indian tech companies. They have been affected by humans more so than tiny viruses. And why wouldn’t they be? The major source behind the success of any company, its human resources are a scarce resource nowadays. In recent months the tech industries have witnessed 100% hikes becoming a new normal.
But according to new sources, this jumping of ships from one place to another seems to be tamed. At least for now.
Accenture reports easing of attrition rate
According to the report published by Accenture, the company’s attrition rate fell by 200 basis points (bps) sequentially to 17% in Q1FY22. This decline is from a multi-quarter high of 19% in Q4FY21. One basis point is one-hundredth of a percentage point. It should be noted that the company’s fiscal year ends in August and its first-quarter ends in November.
According to analysts, the sequential drop in attrition rate indicates that regular compensation increases and promotions are helping Accenture retain talent. It also points to receding talent crunch pressures. In Q1FY22, the company added 50,000 employees. Now, the total headcount of Accenture is 674,325.
To many analysts, given the hot labor market, the fall in attrition is a surprise. “We note that a few Indian IT companies had indicated attrition leveling off in the September quarter while continuing to be at elevated levels for a few quarters. Accenture’s attrition figures emphasize the same and point to a gradual easing of attrition to more manageable levels, a positive for Indian IT,” said Kotak’s analysts in a report.
Accenture is witnessing and foreseeing a strong growth on the horizon
Going by the report, Accenture’s revenue growth performance was robust. Revenues increased by 27% year-on-year to $14.97 billion in Q1FY22, ahead of its own guidance of $13.9 billion–$14.35 billion. It should be noted that the company has exceeded revenue growth estimate by $600 million at the upper end of its guidance range.
At the same time, Accenture’s management has raised its guidance for FY22 revenue growth from 12–15% to 19–22%. In FY22, the company is expecting strong double-digit growth in consulting and double-digit growth in outsourcing.
This easing of attrition at Accenture bodes well for tier-I technology companies such as Tata Consultancy Services Ltd, Infosys Ltd, and Wipro Ltd, as Accenture’s results are often seen as an indicator for the sector’s future performance.