Infosys on 12th July, Friday reported a healthy set of numbers for the June quarter of financial year 2019-20 (FY20). The company delivered on all fronts, except attrition rate which saw a sharp increase.
The attrition level rose to 23.4% in the June quarter, from 20.4% in the preceding one, and 23% in the year-ago quarter. The 8,000 people it hired in the last three months resulted in a net addition of just 906 employees. Infosys also admitted to a higher percentage of layoffs. – Times of India
“UB Pravin Rao, Chief Operating Officer said that the high attrition could be attributed to seasonality and high involuntary attrition. We are living at a time where there are technological disruptions happening and there has been a shortage of skills. We are seeing high degree of attrition due to shortage of talent. Once it stabilises and talent gap minimises we will go back to 13-15 percent. Till then it is likely to continue,”
He also said the company has put in several measures to address the issue. He informed that the company has launched an employee value proposition focusing on engaging better with employees, enabling them and creating better career opportunities.
Infosys’ CEO and MD Salil Parekh said,”the company had a strong start to FY20 with CC growth accelerating to 12.4 per cent on year-over-year (YoY) basis and digital revenue growth of 41.9 per cent. This was achieved through our consistent client focus and investments which have strengthened our client relationships. Consequently, we are raising our revenue guidance for the year.”
Total employees at the end of June quarter stood at 2,29,029 against 2,28,123 in March quarter. The attrition rate (Annualized Consolidated basis) rose sharply to 23.4 per cent against 20.4 per cent in March quarter. In the year-ago period, the figures stood at 23 per cent. “There has been no impact of attrition on deliverables and high performance attrition is still low,” the management said in a presser after results announcement. The percentage of women employess stood at 37 per cent against 36.7 per cent in March quarter and 36.5 per cent in the year-ago period.