Facing one of the highest attrition rate of 16% in the industry, Infosys Technologies stood witness to acquittal of close to 8,000 employees in quarter-ending June 2010 – its highest in the last four quarters. Infosys is facing this predicament despite giving the highest percentage salary hikes, in the range of 13-17%, in the industry. While the senior executive level was given a hike of around 10%, middle and lower level received a hike of 14-17%. For quarter-ending June 2008, Infosys reported a decline of 2.42% in consolidated net profit which stood at Rs.1,488 crore as opposed to Rs.1,525 crore in the corresponding period last year (CPLY). Revenues, on the other hand, increased to Rs.6,198 crore from Rs.5,472 crore – a rise of 13.3% from the CPLY. The Operating Profit too rose by 6.8% to Rs.1,755 crore from Rs.1,644 crore a year ago.
Even though Infosys increased its workforce by over 1,000 employees in the first quarter of 2010-11 and hired close to 8,900 employees, it faced huge attrition. Efforts to reduce such high attrition rates are currently being undertaken at Infosys such as hike in compensation structure and increasing lateral hiring. Infosys has also increased its gross hiring plans from 30,000 (as mentioned in April) to 36,000. Furthermore, the technology major is also contemplating to grant a round of promotion in October. It also plans to enhance its capacity in its development centers in Hyderabad, Chennai and other places to 23,000 and adding another center in Bangalore. An Investment to the tune of Rs.75 crore in this quarter and around Rs.35 crore in the July quarter is also being made to receive increased number of visas. Infosys is aiming to achieve a recruitment figure of 14,000 in July-September quarter, 9,000 of which will be taken in for its BPO arm.