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 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.
Bangalore-based Wipro saw about 12,500 people leaving, even as it reported net addition of a little over 3,000 employees. This is a far cry from much of the 2000s when companies used to add over tens of thousands of engineers every year while losing a lot lesser number of people.