Infosys attrition number is the real shocker

There were a lot of shocking numbers in Infosys’ quarterly earnings. But one that stands out the most is the 14.9 percent attrition rate-this is even given that an industry facing a slowdown typically records low attrition figures. An Economic Times report suggests that close to 8,000 employees left Infosys in the past three months mainly due to wage-hike issues.

The management however during the company’s earnings last week said that there is nothing alarming about the attrition rate as a lot of people leave for higher studies during this quarter. The company had also said that it will hire people laterally to combat this attrition.

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An earlier Business Standard report in May said that the number of Infosys employees looking to move was on the rise. That report had signaled this announcement in May.

Experts note that this is definitely a tough time for Infosys and the system is undergoing a shake up. “These numbers (attrition) are thrice as much as the general industry rate. It’s pretty bad. The company is undergoing a overhaul and maybe the company also laid off people given the demand environment,” said a recruitment expert who spoke to Firstpost on the condition of anonymity.

Ajit Isaac, MD and CEO at Ikya Human Capital Solutions, a Bangalore-based recruitment agency also suggested that the company said that the company might have laid off level 3 and level 4 (junior employees) since their utilization rate, or employees working on live projects was close to 67 percent. “In the next few quarters, IT attrition will come down because of the slowing demand. I believe that a company like Infosys will recover from this,” he told Firstpost.

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