Attrition Rate in the IT Industry

Our youth have been flocking to IT firms for better employment opportunities, but in a recent report by HR firm, Teamlease, indicates that the average rate of attrition in the IT industry has gone up to 8.67% in September, 2021 quarter with Wipro, Infosys and TCS recording an attrition rate of 20.5%, 20.1% and 11.5% respectively.

Employees are the biggest assets for any organisation, and particularly for IT firms. HR Managers are concerned about the continuation of this trend in the coming months and quarters, and therefore they have started hiring new employees and trying to retain the present ones. Three major IT firms- TCS, Infosys and Wipro are set to hire more than 1.5 lac employees this fiscal.

Attrition has its own cost. It delays the projects on which the outgoing employees were working. It may cause client dissatisfaction and lower revenue. IT firms have therefore realised its gravity and started giving handsome packages including attractive compensation, free vacation, ESOPs, WFH options, bonuses etc.

A shift in employee perspective and work dynamics are main contributing factors for this rise in attrition. Demand-supply gap facilitates it further, as demand for technical skills is increasing, while there is a talent crunch. As a result, employees have multiple job offers.

There was a time, when loyalty was the main ingredient for employment that was taken as the only source of livelihood. A boss was always treated as right.

Then came information revolution, when employees started seeking a standard of living, with reduced loyalty and with options to shift to other jobs for better remuneration.

And this is social or digital revolution, where employees seek not only the standard of life, but also the quality of life, quality of job and workplace. They need learning, growth and reward, all put together.

With so many opportunities available in the market, such talented employees are not emotionally connected to a particular firm. Job-hopping is the obvious outcome. A lot of IT employees are shifting to start-ups and other firms for a better salary package and individual growth.

This is a paradoxical situation. Unemployment is the bane of any society, and India is not an exception, but it also gives an opportunity for talented people with an assurance that talent will not have any dearth of opportunities. Some of the world’s biggest companies like Google, Microsoft, Adobe, IBM, MasterCard, Twitter are now headed by Indians.

–Kaushal Kishore

11 Comments

  1. This is an interesting post, Kaushal, as it highlights the now recognized fact that Indians are
    some of the most intelligent people in the world. Not only big firms, that you have mentioned,
    but countries are run by Indians. A good example is the United Kingdom.

    Joanna

    Liked by 1 person

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