Why TCS, Infosys, Wipro, HCL Tech face high attrition rates

Several IT firms such as Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technology for the past few months are facing high attrition rates and the average attrition rate at these IT firms is currently as high as 25 per cent. As hiring has slowed down, the past few quarters have seen significant rise in attrition rates in these IT firms. After analysing the scenario, experts are of opinion that the attrition rate is high because of the less growth opportunities in the IT sector as compared to other sectors.

Infosys reports attrition at 27.1%
Infosys this week reported voluntary attrition of 27.1 per cent for the September 2022 quarter (Q2FY23). Even though it was lower than the previous quarter’s 28.4 per cent, it is higher on a yearly basis as compared with the 20.1 per cent recorded in Q2FY22.

On the other hand, HCL Tech’s attrition (last twelve months) stood at 23.8 per cent in Q2FY23, and TCS attrition rate in IT services was 21.5 per cent during the September 2022 quarter (higher than 19.7 per cent in the previous quarter and 17.4 per cent in the March quarter).

Wipro attrition rate at 23%
Meanwhile, the attrition rate at Wipro in the trailing 12 months for the quarter was at 23 per cent, a moderation of 30 bps from the previous quarter, the company said.

Experts say that along with the growth opportunities in the tech sector and start-ups, there has been a 3x growth in requirements for tech skills in non-tech organisations. The increase in demand has resulted in employers identifying creative ways to attract talent, the attrition across the sector has been extremely high.

Challenges in hiring
Some other experts said that corporate sectors have been facing challenges in hiring and retaining the right people at work, leading to high attrition rate.

The hiring has slowed down in the IT sector and the IT companies globally, including in India, are also going slow on the fresh hirings and moreover resorting to layoffs.

Last week, several major IT companies such as Infosys, Wipro and Tech Mahindra have revoked offer letters they extended to freshers after the companies delayed the onboarding process for months.

How to address high attrition issue?
To address the issue, the experts say that IT firms must also look at becoming more employee-centric and offering cross-skilling or multi-skilling programmes that help employees stay engaged.

They say that the employee recognition at the workplace must play a significant role in retaining them.

Some experts said that meaningful 360-degree feedback programmes on a quarterly basis will enable IT firms to understand employee grievances and needs.

They are of opinion that two-way communication is a requirement for the current generation and this will provide valuable insights into their thought process. India.com