Home ECONOMY High attrition rate worries big IT players

High attrition rate worries big IT players

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OST Business Bureau

Bhubaneswar, Nov 13:

Indian IT companies continue to reel under the high employee attrition rate, thanks to the recent positive growth trend globally, said the Chief People Officer of a leading IT firm, having its centre at the Infocity Park here.

As the Indian currency touched a record low of around Rs 68.75 per US dollar sometime during August this year, the tech companies had a good time, which saw their revenue appreciating in dollar terms, resulting in increased operating profit.

Besides, IT bigwigs like Infosys, TCS, Wipro and HCL Tech etc, have seen their revenues growing owing to the increase in US discretionary spending, more order flow and improvement in corporate earnings in the last few quarters.

“The positive sentiments in the sector have led to more opportunities in the sector, giving wider scope for IT professionals to switching jobs comfortably,” the CPO said.

“The July-September quarter has seen a growth in attrition ratio and it will further surge by 100-200 percent in the coming days, adding to the woes of IT companies,” he added.

“While the attrition rate hovered around 15% in the September quarter last year, the same is 17.3% in the same period this year,” said an official of IT behemoth Infosys.

In case of WIPRO, the percentage of attrition has increased to 15.4% in the September quarter this year, compared to 13% in April-June quarter. “The IT sector was stagnant for the last two years. But the revival in the sector has now led to employees changing jobs at a faster rate,” said an official of a local IT firm in the capital city.

“The ratio of attrition was low in case of mid-tier IT firms compared to the heavyweights in this sector,” the official added.

“The employees tend to get more increment in their salary at about 15-20% by taking up a job in a new company, as against a mere 5-6% rise if they remain in the same company. It is the main cause for employees choosing to shift from one company to another rapidly,” the official told OST.