High attrition has been a major concern for the IT sector in India and even the biggies like TCS, Infosys, Wipro, etc are grappling with it. Amidst the increasing demand for IT services, many tech companies in India witnessed a sudden rise in attrition rates during the first quarter of 2022.
In recent times, most tech companies have been recording high attrition rate of around 15%. IT companies like Mastek, and Cyient apparently recorded a high attrition rate during the first quarter of 2022. But, the attrition rate, however, is relatively low for India's largest IT firm Tata Consultancy Services (TCS).
However, there could be some relief in sight for these companies. Citing a report by brokerage firm Anand Rathi, a national portal (livemint) reported that attrition in IT companies is expected to slow down from the fourth quarter (Q4).
According to the report, the attrition rate will slow as companies have boosted their hiring process and some companies have front-loaded hiring.
The report further said that many big companies have been recording strong revenue growth, which is helping them to increase the workforce significantly.
However, the record high headcount and net additions are putting pressure on supply, the report added.