![]() While IT firms are struggling to contain high attrition, demand from startups and GCCs (global capability centres) remains high. It was upwards of 20% for most mid-tier IT services companies. While Infosys reported an attrition rate of close to 28% in the March quarter of FY22, Wipro reported an attrition rate of 23.8% during this period. Most Indian IT services companies have reported a more than 20% employee attrition rate in the last quarter of FY22. Apart from these measures, the anticipation of an economic slowdown in the US and the Ukraine war is influencing the demand environment now, which may help in containing the high attrition rate faced by Indian IT firms, he added. On an average, salary hikes have been around 12% this year,” Supaul Chanda, vice president of technology recruitment firm Experis of Manpower Group told DH. Apart from higher bonuses, ESOPs, and promotions, the rate of salary hikes during the appraisal has also been more (given the high attrition rate). “Indian IT firms have taken various employee retention initiatives in the last year. Various employee engagement initiatives like higher salary hikes, bonuses, and ESOPs are also starting to show results, they added. ![]() Many experts are of the opinion that demand for technology talent will come down in the coming quarters as the economic slowdown impacts IT spending. And when that happens, it will bring a big respite to the domestic IT industry that has traditionally attracted outsourcing due to availability of technology talent at cheaper cost. An impending economic slowdown, employee retention initiatives by IT firms, and layoffs by startups are likely to pull down the overall attrition rate of the Indian IT industry in the coming quarters. ![]()
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