IT organizations have been reporting at least a 20% increase in attrition rate for the past few quarters, and this trend is expected to continue through the middle of the coming fiscal year.
In the third quarter, attrition at Infosys increased to 25.5 percent, Wipro documented 22.7 percent attrition, while Mindtree reported 21.9 percent attrition. Tata Consultancy Services (TCS) was able to maintain attrition at 15.3 percent, which is below the industry average. To tackle these situation requirements for cloud engineers, data scientists, software developers and cyber security experts have risen tremendously.
Tech companies are willing to pay top cash to hire the best employees, resulting in a hiring war. Companies are giving pay raises of 100-200 percent or more on top of their current income packages. An employee demands a high package and companies are making efforts to retain their employee, which ultimately leads to a higher attrition rate.