As the effects of hiring freezes and retrenchments take hold, India’s software services companies may expect to see a substantial decline in attrition rates in the upcoming quarters, from the present 20%-plus to as low as 16%.
The attrition rate at Infosys decreased to 20.9% in the March quarter from 24.3% in the three months prior, while attrition rates at HCL Technologies and Tata Consultancy Services decreased to 19.5% and 20.1%, respectively.
IT companies have been able to retain staff members thanks to a 50% decrease in contract hiring and salary increases of 8–10% across bands. Even though 45% of their workforce joined from IT firms over the previous year, they still lose workers to back offices run by international corporations in India.
“Over the first two quarters of this fiscal, Indian IT and business process outsourcing industry attrition is expected to drop from FY23’s 20-22% to 16-17%. Because of the sluggish global IT markets, there will be less hiring in FY24. The recruiting slowdown began in November 2020 and will last until September 2023, according to Saran Balasundaram, the founder of HanDigital, a tech recruitment agency.
The attrition rate at Infosys decreased to 20.9% in the March quarter from 24.3% in the three months prior, while attrition rates at HCL Technologies and Tata Consultancy Services decreased to 19.5% and 20.1%, respectively. The earnings for the quarter for Wipro have not yet been disclosed.
It will decline from the pre-pandemic level of 20%. Milind Lakkad, chief human resource officer at TCS, predicted a rise to 13% to 14%.
In the IT services industry, high employee turnover rates resulted from corporations stealing employees from one another as a result of the pandemic and lockdowns that drove up demand for digital goods. However, over the past few quarters, layoffs and hiring freezes at multinational corporations as a result of geopolitical obstacles and a slowdown in the economy have tempered the recruiting frenzy.
However, the industry is still losing people to foreign businesses’ aggressively employing so-called global capabilities centres. According to IT and startup recruitment company Xpheno, these centres hired roughly 45% of their staff members over the course of the previous year from the three tech cohorts of services, products, and startups.”On the curve of tech talent desirability, GCCs rate higher than Indian IT Service providers as global brands. According to Kamal Karanth, co-founder of Xpheno, “GCCs will continue to draw people from the IT Services sector with this brand attraction and comparably higher remuneration levels.
