Apr 18, 2022
By: Bhakti MakwanaIt is no news that a large number of employees are leaving big Indian IT firms, making employee retention a big hurdle for these companies.
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Here’s what is happening on the inside.
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Currently, IT firms are struggling with a high attrition rate, which is the percentage of employees leaving the firm. Both TCS and Infosys have seen a sharp rise in their attrition rates in the last six quarters.
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At a time when demand for digital transformation has been high since COVID-19 hit the world benefitting IT firms with big contracts, these companies are now bearing the brunt of increased employee costs.
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Employee benefits expenses, which usually include health insurance, transport facilities, and more, grew significantly in the past year.
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As demand for digital transformation increases, it opens a myriad of opportunities for techies. Simply put, many of these tech firms are losing staff to startups, likely due to better growth prospects.
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Pravin Rao, the COO at Infosys said, “Startups are also a very attractive place for many of our employees. And with more and more unicorns out there, that sector is now also increasing focus for some of our employees.”
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The issue is not limited to TCS or Infosys, but many IT firms in the industry as companies are hiring more employees with good hikes and promotions to battle high attrition rates.
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On the brighter side, TCS has hired over 1.03 lakh employees in FY22, adding over a third in the last three months alone. Its employee base stands at nearly 6 lakh now.
Credit: BCCL