At a time when digital transformation is at its peak, catalyzed by the Covid-19 pandemic, attrition rates in IT companies especially have surged.
IT giants like Infosys and TCS are worst affected by employees switching companies, bearing the brunt, as better packages and/or opportunities and benefits are being offered on a wide scale to IT employees at present.
Salary hikes with seldom upper bars and attractive employee perks and benefits have become a major attraction used by IT companies to flock best candidates to their pools.
As a result, mass recruiters and traditional IT heavyweights like Infosys and TCS are witnessing high attrition. An attrition rate is a metric used to measure employees or customers lost over a period of time who are not replaced. It denotes the speed at which employees leave an organization.
Here’s Why IT Employees are Leaving Infy & TCS
The IT sector has become one of the highest paid sectors of late. Thanks to the Covid-19 pandemic, the digital revolution sped up and India being an IT hub made the most of it.
Small and mid-tier IT companies today, along with IT startups are gaining good funding sessions, and have a huge sum to attract employees, as a result of which, employees from IT giants like Infosys and TCS have been flocking to such companies.
Not just attractive and heft salary packages, these companies are also offering better career growth opportunities and employee benefits like health insurance, transport facilities, and dependents’ benefits to name some, over the past year.
Infosys COO Pravin Rao states, “Startups are also a very attractive place for many of our employees. And with the increasing number of unicorns out there, that sector is now also increasing focus for some of our employees”.
In the Jan-Mar 2022 quarter (Q4 FY22), TCS’ attrition rose to 17.4%, up from 11.9% in the Dec 2021 quarter and 8.6% at the start of the year.
For Infosys, this figure surged from 13.9% at the start of the year to 27.7% in the March 2022 ending quarter.
According to the MD & CEO of TCS, Rajesh Gopinathan, the attrition rate is likely to rise before it moderates.
Comments are closed, but trackbacks and pingbacks are open.