Indian IT firms are experiencing greater attrition as they see talent with newer skills such as digital and analytics moving to rival companies and global firms who are expanding their teams in India.
According to reports, Infosys, Cognizant both saw an attrition rate crossing 20 percent. While Wipro experienced an attrition rate of 17 percent and TCS saw the lowest attrition of 10.9 percent. However, organizations are now taking steps to overcome the increasing attrition and are also hire more people from the market. Salil Parekh, CEO, Infosys was quoted in media saying, “We are making changes in very specific ways in the compensation model, the timeline of when the compensation is rolled out, how we are doing the movement of expanding leadership and promotions within the company. And my sense is, as that starts to be more properly explained and disseminated within the company, we will start to see an impact.”
IT organizations are adopting promotions and salary hikes to avoid attrition and attract talent.
Rajeev Mehta, President at Cognizant shared with media, " We expect our regular annual pay increases, which take place in the third and fourth quarters, to help retain our highest performers."
According to media, Cognizant has also announced a plan to cut about 200 senior-level jobs as a move to allow junior employees to grow. The company also split the timing of its raises and promotions.