IT companies looking at ways to rein in high attrition rates: Report

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26 Aug, 2025 12:21

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IT companies are increasing their efforts to prevent young skilled employees from quitting, according to a report in The Economic Times.

They are trying to stem the problem with better salary hikes and promotions along with overall employee value proposition.

Companies have even given retention bonuses of Rs 1 lakh to junior employees. A spokesperson of Wipro said that employees are given managerial positions and client-facing roles if they seek better roles and leadership opportunities to advance their career path.

Employees with at least 3 years of work experience along with mid-senior level employees tend to leave due to the skillsets that they have acquired while experienced senior employees are also at high risk of leaving, the average increase in attrition rate in the industry is around 1, according to Debasmita Das, principal – careers and hi-tech industry lead at Mercer.

Top IT firms like Infosys, Wipro, Cognizant and TCS have reported a higher attrition rate in Q2. Cognizant is at 23 percent attrition in Q2 which was at 19 percent in Q1. Infosys reported 23.4 percent attrition in Q2 jumping from 20.4 percent in Q1 while Wipro also saw a 1 percent increase as per the daily.

As the sector faces a regrettable attrition rate— when the replacement cost of experienced employees become high— Cognizant has established a Transformation Office to stem the problem. The daily reports that this effort has up-skilled over 140,000 associates in digital skills in the last 18 months. On the other hand, Infosys is identifying the root cause of attrition and is looking to build actions to attract, develop and retain talent.

"We can arrest attrition from expense management but to a large extent, we believe it's more about giving them opportunities, more about a new narrative around some of these initiatives that we are doing, enabling them on their career progression and so on," Infosys COO UB Pravin Rao was quoted in a ToI report.