Why 23-28% IT Employees Are Leaving Infosys, TCS, Wipro, HCL: Why So High Attrition Rate?
An increase in attrition rate is a huge problem being faced by Indian IT companies of late, especially the IT behemoths like Infosys, Wipro and TCS too.
An elevating face cost overloads and margin pressures are putting a pressure on increased attrition rates in Indian IT firms.
Of all the IT heavyweights in the country, the Bengaluru-based Infosys currently houses the highest attrition rate at 28.4%, followed by Wipro, with attrition at 23.3% and Tech Mahindra at 22%.
The Managing Director and Chief Executive Officer of Tech Mahindra, CP Gurnani said, In general when an industry goes through a rapid surge, there is shock with attrition rate running at 23-24%, I think that shock stage is now coming down.”
The attrition rate at such IT companies are so high that they are now indulging into hiring sprees, raising their net hirings to over 50,000 in the Apr-Jun 2022 period or Q1 of financial year 2022-23.
However, despite over 20% attrition rate in companies like Infosys, Tech Mahindra and Wipro, the rate in India’s largest IT giant TCS remained at 19.7%, climbing 2.3% from the previous quarter in Q1 FY23.
The bellwether’s CEO Rajesh Gopinathan said that even though the behemoth’s attrition rate has not come down yet, it will start to reduce and subside going forward in the upcoming quarters.
While announcing the earnings results of its Q1 FY23 period, TCS’ management said, “On an absolute basis it (attrition rate) is continuing to increase though on a percentage basis it is starting to flatten and that may continue into part of Q2 also.”
On IT Employees Switching Jobs
According to a Business Today report, Indian tech employees switch jobs too often, with one such employee working in Bengaluru saying, “The growth opportunities are very less if we stay in the same company for more than 1-2 years now. The growth trajectory at any of the top Indian IT companies is not the same like it used to be before, we have cutthroat competition in the industry. ”