BENGALURU: Some Indian IT firms have shown an uptick in attrition rates, signalling a moderate pickup in the demand environment and opportunities opening up for specialised roles.
HCLTech’s attrition rate inched up to 13.2% from 12.9% in the previous quarter and 12.8% in the year-ago period. “Our attrition stands at 13.2% on an LTM basis, slightly higher compared to the previous quarter, which is a natural consequence of the demand pickup,” its CEO C Vijayakumar said during the earnings call.
The company’s HR head, Ramachandran Sundararajan, said that the attrition rate would stabilise and conclude FY25 at 13.2%. HCL added 2,134 employees in the Dec quarter, taking the total headcount to 220,755.
Among these firms, Wipro records the highest attrition at 15.3%, showing an increase from 14.1% in the first quarter. Nevertheless, the company’s leadership indicates that new resignations are decreasing and expects the attrition rate to decline. TCS saw an increase in attrition to 13% in the December quarter from 12.1% in the June quarter. Infosys also witnessed a rise, with rates climbing from 12.7% at the year’s outset to 13.7% at the current level.
Quess Corp IT staffing CEO, Kapil Joshi, says the spike in attrition is due to demand reviving in retail, manufacturing, and the BFSI. “Attrition is expected to stabilise at 12-13% by FY26 as the sector adjusts to moderated demand and implements optimised workforce strategies,” Joshi estimates.
Experis’ president, Sanju Ballurkar, indicates that whilst current attrition rates are rising, they remain lower than the 20% witnessed during the pandemic period, primarily due to increased demand for AI-related expertise. Industry analysts suggest that global capability centres’ competitive recruitment practices have influenced these patterns. NLB Services’ CEO, Sachin Alug, suggests that IT services organisations need to match GCCs’ career advancement opportunities to regain their competitive position. The Dec quarter saw headcount decline, with three of five IT firms reporting decreased numbers. The top five Indian IT companies recorded a collective reduction of 2,587 personnel, contrary to the Sept quarter’s addition of 15,033 staff.
