IT companies have been witnessing a sharp decline in the attrition levels over the past couple of quarters. This is similar to what happened during the 2008 recession when attrition declined as job opportunities fell and employees grew cautious about changing jobs due to the uncertain economic environment. The attrition rate at Infosys Technologies dropped to 15.6% from 17% over the past two quarters. At TCS, it fell to 13.7% in the quarter ended September, after having risen for several quarters to reach a high of 14.8% in the quarter ended June. MindTree's attrition rate fell to 21.7% in the latest quarter from 25.6% in the June quarter. Attrition levels at Hexaware fell to 14.7% over the past two quarters from 19.6%.
The decline in attrition is due to the proactive HR efforts and employee-retention initiatives undertaken by the company. The growth in the sector is strong, and thus it is not the economic climate that is driving attrition down.
Source: The Economic Times