Even as high attrition rates continue to haunt Infosys, the country's second-largest IT services firm is confident of bringing it down to 12-14% in the next two quarters as it gets back to the growth trajectory.
The attrition level grew higher to 20.1% in the July-September 2014 quarter as compared to 19.5% in the April-June 2014 quarter and 17.3% in Q2 last fiscal. In comparison, TCS had
reported an attrition rate of 12%, while that at Wipro (IT services) and HCL
Services stood at about 16% and 15%, respectively, in the April-June 2014
quarter (last 12 month basis). Historically, attrition rates have hovered
around the 12-14% range. Infosys made a gross addition of 14,255 employees (net
addition of 4,127) during the quarter under review, taking its total headcount
to 1,65,411 as of September 30, 2014. Infosys chief operating officer Pravin
Rao said. The
firm has already given about 12,000 promotions in April; Infosys had announced
a wage hike of 6-7% for offshore employees and 1-2% onsite employees. Analysts had expected the country's second-largest IT exporter to post
attrition of around 22% in the second quarter, despite CEO Vishal Sikka
engaging with employees, and promoting around 5,000 employees since he took
over. Infosys has grappled with rising attrition over the
past year, and saw several high-profile exits.
Infosys said it has
increased its utilization rate to 75.2% (including trainees) in the said
quarter, while that excluding trainees stood at 82.3%. However, most analysts believe that Infosys will be able to slow the
exits by the end of the third quarter in December.
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