With the trend in employee attrition, the IT sector in India is facing one of its toughest challenges in many years.
As the demand for technology professionals explodes, many Indian IT companies are witnessing a surge in attrition rates. And, to deal with this, companies have started hiring freshers in record numbers.
India's big four IT firms- Tata Consulting Services (TCS), Infosys, Wipro, and HCL Technologies have highlighted increasing employee attrition rates in their latest completed quarters.
Bangalore-based IT exporter, Wipro had the highest attrition rate at 20.5%, followed by the second largest IT firm in India, Infosys at 20.1%. On the other side, HCL Technologies reported its all-time high attrition rate of 15.7%, while India's largest software exporter TCS reported 11.9% attrition rate, which was the lowest among the big four.
TCS, in its latest quarterly results reported that as many as 43,000 fresh graduates have joined TCS in the first half of this fiscal. The IT giant is also expected to hire at least 35,000 freshers in the second half of the financial year 2022. Infosys, Wipro and HCL have also increased their fresher intake and revised their campus hiring targets significantly.
Apart from high demand and attrition, it is also believed that the increased activity in the Indian startup scene is also creating an IT talent crunch. Many startups are reportedly luring IT professionals on to their payrolls, which is also adding to the demand supply gap.