Saturday, May 26, 2018

Attrition Rate increased in IT Companies

It has been observed that the attrition rate is increased from last several years in the information technology sector, which leads to an adverse effect on the IT companies. The employees who work in the IT companies are now looking for the new employment opportunities and shifting to the other organizations. It was trapped that now demand is increased and new opportunities are available in the market place, which attract employees, especially those working in IT sector.
The attrition rate has been increased in the large size IT companies during July- September, 2013 and according to the experts , this trend may continue and going forward.
It has been observed that the demand was more or less stagnant and even declining for some players for the last 2 years but now demand is increasing and thus there are some people who are shifting their jobs. It can be said that the attrition may increase by around 100-200 basis points in the next four quarters.
If we talk about some IT companies, then Infosys, India’s second largest IT services company's attrition rate in July-September 2013 was highest in more than six quarters. In Bangalore, the attrition rate was 17.3 percent in July-Sep, 2013, 16.9 percent in April- June’2013 and 15 percent was in the last year, so it is increasing continuously. There are few mid size companies in which attrition rate is lower during July- Sep, 2013, HCL Technologies saw a sharp rise in attrition rate during the quarter. During the quarter ended 30 Sep, 2013 the attrition rate of HCL was 16.1 percent as against 14. % a quarter ago. Wipro, the third largest IT Company shows the attrition rate at 15.4% in July-September 2013, as against 13.0% in April-June 2013.
According to the experts, there are few factors behind this, like one reason is better monetary prospects or employee dissatisfaction on salaries, another reason of switching the job is the opportunity to go abroad etc.
All the IT companies understood this and to overcome this problem, they are planning some strategies and methods, to decrease the attrition rate.

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