TCS, Infy, Wipro lost over 10k staff in 4 quarters
India's $146-billion information technology (IT) industry is consistently hemorrhaging more people than ever before, even as the sector and large companies such as Tata Consultancy Services (TCS) and Infosys achieve greater size and scale with each passing year.
Over the last four quarters, India's largest software exporters TCS, Wipro and Infosys combined have lost roughly over 100,000 people between them, ET's analysis shows.
Gross addition for the three combined stood at roughly 150,000, while net addition was between 40,000 to 50,000.
According to at least two CEOs of India's top 10 outsourcing firms, metrics like gross addition of employees are becoming increasingly irrelevant and companies are also strategically starting to manage attrition, amid the advent of automation and emergence of newer technologies such as cloud computing.
Increased attrition rates of 19%-20% are starting to become the new normal for companies —a far cry from the days when companies like Infosys used to enjoy higher growth rates and lower levels of attrition.
Infosys' attrition rate, for example, was 22.3% on a consolidated basis and 18.9% on a standalone basis for the year ended March, significantly more than its attrition rate of 13.4% five years ago, in FY10. In the latest quarter ended June, Infosys lost 8,553 employees, with a net addition of 3,336 employees.
For TCS, attrition number was nearly double that of Infosys, losing nearly 15,000 people during the quarter, with a net addition of roughly 5,279 employees.