It is safe to say the IT services companies are expected to grow at least in the lower double digits. The demand for tech staff is extremely high and the demand will remain high for at least the next two years. Main reasons for high attritionĮven during periods of high growth in the past, attrition was not as high as is being seen today and this trend is continuing. This is clearly seen in departures from the IT service providers sector which has increased dramatically in the December quarter. That having been said the element of high attrition has become a fact of life. It is estimated to be anywhere between 5 lakhs to 6 lakhs both for the IT service industry and for the start-up industry, this up being led by growth in digital spending in India and globally. This attrition has increased from quarter upon quarter in TCS, from 11 per cent to 14.5 per cent, in Wipro from 17 per cent to 20 per cent, and Infosys 20 per cent to 25 per cent.Īll the indications are visible that this year there is going to be a happy hike in hiring. What is the common trait in all 3 is the major increase in attrition, quarter upon quarter and year upon year. The three giants hired 1.34 lakh employees in 2021 as compared to 35,000 between April and December 2020. All three have also stated clearly that they will be hiring more freshers. TCS has increased its net employee addition by 87,725 in 2021 as compared to 22,585 in 2020. All three have also shown sizeable additions to their human capital. Infosys stands out for its stellar growth performance as well as its growth in profits. TCS, Infosys, and Wipro have all shown growth. “Given the success of our vaccination program, we introduced our Flexible Workspace program on 15 September which is a voluntary option for fully vaccinated associates to work from select Cognizant facilities," Nambiar said.The December quarter results of the Big 3 of the Indian IT industry makes good reading. “The training programmes are really helping us to retain our people…we are focusing on areas which will increase our stickiness with the employees and ensure that we are truly being an employer of choice," Nambiar said.Ĭognizant has deployed a phased approach to bring its employees back to the office and scale up operations as needed. We continue to do a quarterly promotion cycle," Nambiar said.Ĭognizant also has a special jobs promotion programme which enables qualified employees to take up a role above their current level. “We continue to revisit and benchmark ourselves with the salaries in the marketplace and then we will do what it takes. We have a deep bench of seasoned talent and a highly skilled dedicated global team," Nambiar said.Īs a measure to retain talent, Cognizant has announced its annual merit cycle effective 1 October for most employees. “We have also restructured our leadership with a good mix of internally promoted talent and lateral hires. It is on track to onboard 30,000 new employees this year and roll out an additional 45,000 offers for 2022. It has stepped up its recruitment engine by onboarding a record number of 17,000 new hires in the September quarter taking its total headcount to 318,400. The IT services industry has been witnessing higher attrition levels over the last few quarters on the back of a demand-supply gap for tech talent, especially digital skillsets, as well as increased prevalence of the gig-economy versus long-term employment," said Ankit Garg, associate director, Auctus Advisors.Ĭognizant, meanwhile, has taken a number of measures to address the high attrition levels. “As far as recent uptick goes, while some of it, both planned and unplanned, can be attributed to the ongoing transformation at Cognizant, it is more significantly the macros that are at play. Our bookings are at a healthy 24% growth year-on-year," he added.Īnalysts, though, point out that Cognizant has historically had a higher base attrition than peers, right from pre-Covid days. "We continue to deliver against our commitments to clients across the globe. Nambiar, however, insisted that the steep attrition rate has not impacted Cognizant’s growth.
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