Even today freshers who have undergone training of at least one year in any of the big 3 can easily get a job at a startup company for double the salary. In any attrition analysis, one can find that people who are high performers leave more swiftly and in greater numbers than those not performing up to the mark because the market demand for the former is that much more.
In the era of ESG (Environmental, social and corporate governance) instead of leading, they are falling behind. The IT service companies seem to have lost their Soul and values. No service company can survive and grow with such huge attrition in the IT services field for long. They are protesting by walking out on their feet in large numbers. The Founders too have become very very rich but the poor employees have been ignored. Profit dominates compassionate capitalism, the mantra of their Founder earlier. These companies have thrown the values they stood for many years ago. They have been hugely discriminated against. Even the compensation of the board members in the same period has gone much higher than the compensation for the employees.Įssentially, top management and the Board have given themselves huge increases, rewarded themselves handsomely at the cost of the ordinary employees who work 10-12 hours everyday, without overtime. It is a sad commentary on the way compensation is being given out by the boards of these companies, which once upon a time stood for a much more egalitarian, employee-friendly package. Enough reason to pack bags and trade the experience. Over this time, the service providers have seen a dramatic increase in the compensation for senior people, particularly the C Suite, up by 5 to 6 times whereas the fresher compensation has only gone up maybe by 0.1 to 0.15 times. This figure has probably gone up by an average of 10-15 per cent over the last 13 years. The compensation is stagnant.Ĭompensation in the freshers batch hasn't increased in any appreciable manner since 2009 till today. If one looks at attrition data and talks to people in the know, they will find that attrition in the 0-5 years experience is highest for all the companies and the reason is very clear. This triggers a greater demand for technology staff. The startup industry raised around 40 billion dollars last year and in this calendar year and is expected to raise another 40 billion dollars with another 40-45 unicorns coming up. It is safe to say the IT services companies are expected to grow at least in the lower double digits. The demand for tech staff is extremely high and the demand will remain high for at least the next two years. Main reasons for high attritionĮven during periods of high growth in the past, attrition was not as high as is being seen today and this trend is continuing. This is clearly seen in departures from the IT service providers sector which has increased dramatically in the December quarter. That having been said the element of high attrition has become a fact of life. It is estimated to be anywhere between 5 lakhs to 6 lakhs both for the IT service industry and for the start-up industry, this up being led by growth in digital spending in India and globally. This attrition has increased from quarter upon quarter in TCS, from 11 per cent to 14.5 per cent, in Wipro from 17 per cent to 20 per cent, and Infosys 20 per cent to 25 per cent.Īll the indications are visible that this year there is going to be a happy hike in hiring. What is the common trait in all 3 is the major increase in attrition, quarter upon quarter and year upon year. The three giants hired 1.34 lakh employees in 2021 as compared to 35,000 between April and December 2020. All three have also stated clearly that they will be hiring more freshers.
TCS has increased its net employee addition by 87,725 in 2021 as compared to 22,585 in 2020. All three have also shown sizeable additions to their human capital.
Infosys stands out for its stellar growth performance as well as its growth in profits. TCS, Infosys, and Wipro have all shown growth. The December quarter results of the Big 3 of the Indian IT industry makes good reading.
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