India’s IT Giants Witness Decline in Attrition Rates Amidst Slow Headcount Growth

Amid a slowdown in headcount growth, India’s prominent IT companies have reported a decrease in their attrition rates during the first quarter of FY24, as stated in their latest quarterly earnings disclosures, as reported by Business Today.

💻 Tata Consultancy Services experienced a significant decline in new hires between April and June this year, with only 523 employees recruited compared to 14,136 during the same quarter last year. The attrition rate dropped to 17.8% in the April-June quarter, down from 20.1% in the previous quarter. CHRO Milind Lakkad emphasized the company’s focus on optimizing the capacity built in the previous year.

💻 Wipro’s attrition rate touched an eight-quarter low of 14% in the same period, as stated in a company statement. The number of new hires for Q1FY24 was approximately 8,000 lower than the corresponding period last year.

💻 Infosys witnessed a net headcount growth reduction of 7,000 quarter-on-quarter in Q1FY24, and the attrition rate also decreased to 17.3% from 20.9%. CFO Nilanjan Roy emphasized Infosys’s emphasis on enhancing employee utilization to achieve cost optimization in the upcoming quarters.

💻 HCLTech’s total headcount in June this year declined sequentially by 2,506. The company also recorded a decline in attrition rate from 19.5% in the last quarter of FY23 to 16.3% in Q1FY24.

Kamal Karanth 🇮🇳, Co-founder of specialist staffing firm Xpheno, highlights, “The drop in attrition and reduced headcount additions, coupled with a rise in compensation spend, is a potent mix. This combination statistically means a higher per capita earning for talent.”