India’s IT sector has been dealing with an all-time high attrition rate over the last few quarters. Amid the rising attrition, IT companies are also fighting with issues such as moonlighting, shortage of digital talent, rising demand for tech talent, and increased compensation.
Tata Consultancy Services (TCS), Infosys, and Wipro – the top three IT Companies in India have raised their net hirings to over 50,000 in the first quarter of the financial year 2022-23 as a result of high attrition, as per their financial results.
Over 68000 employees have left the organizations in the first quarter of the financial year 2022-23 and a total of over 2 Lakh employees left in the last 1-year from these IT companies.
If we see the previous quarterly reports, at TCS, almost the Total number of Employees Left is 92,618 in the last 12 months.
Rajesh Gopinathan, CEO & MD, TCS said after the quarterly results announcement in July 2022, “The firm’s attrition rate has not come down yet, but might do so in the coming quarters.”
“On an absolute basis, it (attrition rate) is continuing to increase though on a percentage basis it is starting to flatten and that may continue into part of Q2 also.” He added.
Tata Consultancy Services (TCS)
| Quarter | Headcount | Attrition | Employees Left | Employees Added |
| Q1FY23 | 6,06,331 | 19.7% | 29,861 | 14,136 |
| Q4FY22 | 5,92,195 | 17.4% | 25,760 | 35,000 |
| Q3FY22 | 5,56,000 | 15.3% | 21,267 | 28,338 |
| Q2FY22 | 5,28,748 | 11.9% | 15,730 | 19690 |
Total Employees Left – 92,618
Infosys
Infosys’ attrition rate stood at 28.4 per cent, the highest among Indian IT bellwethers, in the first quarter of the financial year 2022-23 which up from 13.9 per cent a year ago and 27.7 per cent in the immediately preceding quarter.
However, among its peers including TCS, Wipro, HCL Tech, the Bengaluru-based IT major made the most hiring in the quarter ending June 30, 2022.
| Quarter | Headcount | Attrition | Employees Left | Employees Added |
| Q1FY23 | 3,35,187 | 28.4% | 23,798 | 21,171 |
| Q4FY22 | 3,14,015 | 27.7% | 21,745 | 21,848 |
| Q3FY22 | 2,92,067 | 25.5% | 18,619 | 12,450 |
| Q2FY22 | 2,80,000 | 20.1% | 14,070 | 11,600 |
Total Employees Left – 58,632
Wipro
The rising attrition rate has continued to be a big concern for IT companies in India due to increased demand for technology talent. As per the regulatory filing to the stock exchanges, the attrition rate in the Indian IT services major Wipro was 23.3% in Q1FY23.
| Quarter | Headcount | Attrition | Employees Left | Employees Added |
| Q1FY23 | 2,58,574 | 23.3% | 15,061 | 15,000 |
| Q4FY22 | 2,43,128 | 23.8% | 14,466 | 45,416 |
| Q3FY22 | 2,37,671 | 22.7% | 13,487 | 10,306 |
| Q2FY22 | 2,21,365 | 20.5% | 11,344 | 11,475 |
Total Employees Left – 54,358
Attrition is the biggest challenge in IT Industry as of now, consequently, these major IT companies have chalked out plans to prevent the ‘Great Resignation’ and retain their talents.
The major IT players are taking steps such as mid-term hikes, promotions, bonuses, etc to avert the attrition crisis.
