The IT sector is facing unprecedented talent crunch as the attrition rate has become one of the biggest concerns for companies.
And New Jersey-based IT firm Cognizant Technology Solutions has been the worst hit. The software services exporter, which employs over 3 lakh people globally, witnessed the highest attrition rate in the industry. On a trailing 12-month basis, Cognizant clocked an attrition rate of 33% during the September quarter this year.
To put this into context, India's largest software exporter, Tata Consultancy Services (TCS) recorded the lowest attrition rate of 11.9% in quarter, while Infosys recorded 20.1%, Wipro 20.5%, and HCL Technologies saw the number at 15.7%.
And to deal with this attrition problem, Cognizant is now focusing on retention and recruitment, said CEO Brian J. Humphries during the Q3 Earnings Call announcement.
Despite elevated attrition, Cognizant increased its net headcount in Q3 by over 17,000 sequentially. The company is also planning to hire as many as 45,000 new graduates in India by 2022.
On the other side, Cognizant is also planning to hire approximately one lakh lateral employees during the current fiscal year.
The Cognizant CEO also said that the IT firm is committed to supporting employees' career growth and engagement through a range of initiatives, and annual increments in the fourth quarter.