The information & Technology Industry has reported a sharp rise in attrition since last year. The companies like TCS, Infosys, Cognizant, Capgemini, Wipro, HCL and facing the same challenge and also face cost overloads and margin pressures after the US recession fear.
April – June Quarter Attrition
In the last quarter this year, the companies have announced below attrition.
- Tata Consulting Services- 19.7%
- Infosys – 28.4%
- Wipro – 23.3%
- HCL- 23.8%
- Tech Mahindra- 22%
- Cognizant – 32%
However, commenting on the Attrition, IT companies’ chiefs say that the rising attrition is getting driven by the demand-supply situation. Since there is a lot of demand, there is obviously a little bit more churn than normal. During the first phase of the pandemic, attrition had come down significantly but in the last 3-4 quarters, it has been at elevated levels.
Recently, Mohandas Pai, Chairman of Aarin Capital and former Infosys Director said “While Indian IT companies are earning good money, they are paying their senior members more, at the cost of freshers.”
“How can a senior person take a hike in salary when you aren’t paying juniors more?” He added.
He further said, “IT industry is exploiting freshers for the last 10 years. There has been no increase in compensation, freshers are being paid the same Rs 3.5 – 3.8 lakh which the companies were paying in 2008-09.”
Pai further said, “Team them like humans, not midgets”
Commenting on the Attrition he told Business Today, “There is an excess of people working in the Indian IT industry. There is a surplus of people in the system. All of them want to join the big companies and build a career and get good training.”
He said, “It is also worth noting that top IT companies including Infosys, Tata Consultancy Services (TCS), and Wipro are postponing or reducing the variable payout to employees after reporting tight margins.”
“If any sacrifices need to be made, senior people should make them,” Pai added,
What do you think? Please do share.
