Attrition rate picks up in IT firms as demand rises
IT services companies like Infosys and Wipro reported rise in their attrition numbers in Q4 FY21
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However, market leader TCS was the only exception. Its attrition level fell to 7.2% in the IT services space from 7.6% reported in the previous quarter. The fourth quarter attrition rate is the lowest for any quarter for the Mumbai-based IT services firm
Bengaluru: With demand picking up, many large IT services companies have seen their employee attrition going up in the fourth quarter of last financial year ended March 2021. IT majors such as Infosys and Wipro reported rise in their attrition numbers, though market leader Tata Consultancy Services witnessed a dip during the January-March period.
Country's second largest IT firm Infosys witnessed employee attrition going up by 5.2 per cent at 15.2 per cent in Q4 of FY21 as compared to 10 per cent reported in the previous quarter. "Attrition has picked up, largely reflecting a strong demand environment, but we remain confident of our employee engagement initiatives, vast talent pool, and training capabilities to ensure seamless execution," said Pravin Rao, Chief Operating Officer at Infosys. Similarly, Wipro has also seen attrition level going up by 110 basis points to 12.1 per cent during fourth quarter.
"While we are aware that there is a shortage of talent due to the demand environment, we are taking various steps to retain employees," said Saurabh Govil, President & Chief Human Resources Officer at Wipro.
However, market leader TCS was the only exception. Its attrition level fell to 7.2 per cent in the IT services space from 7.6 per cent reported in the previous quarter. The fourth quarter attrition rate is the lowest for any quarter for the Mumbai-based IT services firm.
