It has been observed that the attrition rate in the information technology sector has increased over the last several years, which hurts IT companies. Employees in IT companies are now looking for new employment opportunities and shifting to other organizations. It was a trap because demand has increased, and new options are available in the marketplace, attracting employees, especially those in the IT sector.

The attrition rate increased in large IT companies during July- September 2013; according to the experts, this trend may continue.

It has been observed that the demand was more or less stagnant and even declining for some players for the last two years, but now demand is increasing, and thus, some people are shifting their jobs. It can be said that the attrition may increase by around 100-200 basis points in the next four quarters.

If we talk about some IT companies, then Infosys, India’s second-largest IT services company, attrition rate in July-September 2013 was the highest in more than six quarters. In Bangalore, the attrition rate was 17.3 per cent in July-Sep 2013, 16.9 per cent in April- June’2013 and 15 per cent in the last year, so it is increasing continuously. There are a few mid-size companies in which the attrition rate was lower during July- Sep 2013; HCL Technologies saw a sharp rise further in the quarter. During the quarter ending 30 Sep 2013, the attrition rate of HCL was 16.1 per cent as against 14. % a quarter ago. Wipro, the third largest IT Company, shows the attrition rate at 15.4% in July-September 2013, as against 13.0% in April-June 2013.

According to the experts, there are a few factors behind this, like better monetary prospects or employee dissatisfaction with salaries; another reason for switching jobs is the opportunity to go abroad, etc.
All the IT companies understand this, and to overcome this problem, they are planning strategies and methods to decrease the attrition rate.