The Big IT Layoff Continues as Employee Turnover Rises at TCS, Infosys, Wipro

The “great attrition” – a new term that emerged last year to describe the growing trend of employees leaving their jobs – appears to be continuing as India’s leading IT firms continue to see a surge in employee growth, as announced in their earnings for the third quarter of the current fiscal.

The employee turnover rate at TCS, India’s largest IT company, rose to 15.3% in the third quarter of fiscal 2022 from 11.9% in the previous quarter. However, the company said this was the lowest in the industry.

“Continued investments in organic talent development, progressive workplace policies and a dynamic culture that empowers individuals and fosters creativity have resulted in a long-term track record of best-in-class talent retention,” TCS said while announcing its Q3 results.

Milind Lakkad, chief HR officer at TCS, in the financial results release said the IT giant was giving preference to internal candidates for vacant positions, global onboarding opportunities, learning career paths and promotions for its employees to retain top talent and overcome supply-side challenges.

On the other hand, voluntary attrition of the country’s second largest IT company Infosys (LTM – IT Services) increased to 25.5% in the third quarter from 20.1% in September and 11% year-on-year (YoY). Fellow IT giant Wipro’s attrition increased to 22.7% (voluntary TTM) on a 12-month basis from 20.5% in the second quarter (Q).

The attrition of employees from IT companies is increasing, which is seen as a key issue for companies and the industry. The IT sector maintains an upward trend in recruitment activity with a constant demand for skilled personnel in the sector.

The relentless growth of talent has disrupted the balance of demand and supply, forcing organizations to focus on both attracting and retaining talent. As companies migrate their legacy systems and build next-generation platforms and processes, the demand for technology skills talent is growing rapidly.