Employees are leaving IT giants TCS, Infosys – here’s why

Apr 18, 2022

By: Bhakti Makwana

Here’s why the craze for employment in IT giants like TCS, Infosys losing shine

It is no news that a large number of employees are leaving big Indian IT firms, making employee retention a big hurdle for these companies.

Credit: BCCL

Here’s why the craze for employment in IT giants like TCS, Infosys losing shine

Here’s what is happening on the inside.

Credit: BCCL

TCS, Infosys see employee attrition rates double in one year

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.

Credit: Flourish-chart/company-filings

IT firms across the industry face similar issues

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.

Credit: Flourish-chart/company-filings

High attrition leads to huge employee costs for firms

Employee benefits expenses, which usually include health insurance, transport facilities, and more, grew significantly in the past year.

Credit: Flourish-chart/company-filings

Why are employees leaving IT firms?

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.

Credit: BCCL

Infosys says ‘startups are attractive’ for IT employees

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.”

Credit: BCCL

Tech firms boost hirings

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.

Credit: BCCL

India’s largest IT firm hired over lakh employees in FY22

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

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