Why is there a high attrition rate in IT sector?

The shortage of IT professionals with niche digital skills has led to the surge in attrition in Q2. As employees voluntarily quit their jobs in large numbers, the attrition rate in top-tier Indian IT companies were in double digits during the quarter ended September, recording a steady rise from its previous quarters.

What is the average attrition rate in IT industry?

Attrition in a company refers to employees that voluntarily quit. “With an average of 23\% attrition projected on a talent base of 5 million, the tech sector is set to witness over 1 million talent movements this year,” said Kamal Karanth, CoFounder, Xpheno.

What is high attrition rate?

What Is A ‘High’ Employee Attrition Rate? Generally, high attrition rates or churn rates indicate that employees are turning over pretty quickly while low attrition rates mean that people are staying with your company for a longer period of time.

Which of the following sector employees have growing attrition?

The retail sector. Quite high too at 20.5 percent. Retail also happened to be the only sector which faced an increased attrition in 2020.

How does attrition affect an organization?

Losing such employees and having them replaced by others can lead to a culture clash within the organization, with impacts on effective collaboration and employee engagement. Extended productivity: Employee productivity increases over a period of time as they become more familiar with their role.

Which company has the highest annual attrition rate in the industry?

The American multinational technology company Cognizant’s quarterly annualized attrition moved up to 24 per cent, one of its highest in the industry, while voluntary attrition was 11 per cent.

What is the attrition rate of analytics professionals in India?

Meanwhile, the attrition rates of analytics professionals in India stood at 16.0\% in 2020, dropping from 30.7\% in 2019. Industry analysts anticipate a 22-23\% attrition rate in 2021, which works out to one million resignations on a projected base of 4.6 million IT employees.

What is the attrition rate of Infosys employees?

Infosys has recorded an attrition rate of 15.2\%, and Wipro’s attrition rate stood at 12.1\% in the fourth quarter. Meanwhile, the attrition rates of analytics professionals in India stood at 16.0\% in 2020, dropping from 30.7\% in 2019.

What is the attrition rate at Cognizant in 2021?

Employees were already seeing 50 to 70 percent hikes in April this year, and the demand has been soaring ever since. The attrition rate of Cognizant is at 21\% for the Jan to March quarter of 2021, in contrast to 19\% in the same quarter last year.