Cognizant faces the worst attrition rate in the industry, hires record number of employees to fill the gap
- Nasdaq-listed IT firm Cognizant is going through a bad phase in terms of employees leaving the organisation.
- The attrition rate of Cognizant is 33% much more than its Indian counterparts TCS with 11.9%, Infosys with 20.1%.
- The IT giant added a record number of employees to fill the gap.
AdvertisementThe Indian information technology (IT) industry is reeling with a very high number of employees leaving the firms as the demand for digital services rises and so does the talent serving it.
US-based Cognizant in its September quarter saw 33% attrition rate, which is far more than its Indian counterparts Tata Consultancy Services (TCS) with 11.9% and Infosys with 20.1%.
As a result of the rising attrition rate, the company has brought in a number of employees onboard. It added 17,200 new employees in the September quarter taking the total headcount to 3.18 lakh.
“While the industry faces an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and stayed focused on delivering against our client commitments and our strategic repositioning,” said Brian Humphries, chief executive officer at Cognizant.
The issue is not limited to a few IT companies but across the industry and to mitigate the number of employees leaving the firm, companies are deploying measures like broad-based hikes, promotions and retention incentives.
Meanwhile, the company reported a double digit revenue growth of 12% to $4.7 billion in the third quarter (July-September), 2021.
Further, the company has guided for $18.6 billion revenue in FY2021. The company follows a January to December accounting year.
Shares of most IT companies were trading a tad lower on Thursday morning.
|IT companies||Share price change on October 28|
|L&T Technology Services||-0.19%|
SEE ALSO: Nykaa raises nearly ₹2,400 crore in anchor investment from Government of Singapore, Goldman Sachs, JP Morgan and others
Nykaa IPO will open today — here is how to apply via bank and apps like Zerodha, Paytm Money
Popular on BI
- I've had the new iPhone 14 for 2 weeks. I should've listened to Steve Jobs' daughter because I now regret buying it.
- China tells state banks to prepare for a massive dollar dump and yuan buying spree as Beijing's prior interventions have failed to stem its currency's worst year since 1994
- Here is a list of bank holidays in October 2022
- IISC joins hands with AIIMS Rishikesh to develop algorithm that can read brain scans to detect epilepsy
- Overlapping symptoms of dengue, Covid-19 confusing in many cases, say doctors
- Sterlite Technologies launches optical solution for 5G rollout
- NASA pushes back Artemis I Moon mission launch to November
- Auto sales jump in September: Maruti reports over a 100% jump in volumes