Here's how Indian IT firms are looking to address attrition woes

Representative image (Source: Reuters)

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26 Aug, 2025 12:21

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Despite being the country's top IT company, Tata Consultancy Services (TCS) also has to deal with attrition - an industry phenomena. As per reports, the company will double the salary of those employees who prove that they are 'Hot Talents'.

The company launched the TCS National Qualifier Test (TQNT) in 2018, whereby it made offers to 30,000 freshers that year. Out of these, 1,300 would be given a chance to appear for a more advanced test, a step towards proving that they could be the 'hot talent'.

The main idea behind this test was to bypass the yearly campus hiring process which takes up more time, while trying to bring the industry's top talent into their fold.

Also Read | Technology is key to upskilling blue-collar workers

Meanwhile, a similar offer incentive is on the table for the company's existing employees as well. Those who have been working with TCS and hold at least three years of experience will also be able to take a shot at doubling their current pay starting in FY20.

But, TCS is not alone in its attempts to retain its best employees. Earlier this week, Wipro announced that it plans to promote nearly 5,000 employees by December this year. This, the firm said, was mainly to check attrition and prepare the company for the future. Employees in the five to eight years experience group would be eligible for these promotions.

Similarly, India's second largest IT major Infosys hired around 6,000 freshers in the quarter ended September this year. It also announced that for FY20, it would hire around 18,000 freshers via campus placements.

This year, the net hiring by these top three IT players went up 59 percent in the September quarter as against that in the June quarter, as per a report by The Hindu BusinessLine. They hired 28,157 employees in Q2FY20 as compared to the 16,687 hired in the quarter before that, the report added.

IT companies are increasingly resorting to new ways to retain crucial talent in their fold, while also working towards upskilling existing employees to train prepare them for the shifting demand in skill set.

Over the years, the industry has witnessed a rise and expansion in digital technologies, a phenomena which gives rise to different requirements in skill sets of employees. Companies are therefore rethinking their existing hiring processes to ensure that they are able to recruit people who have skills in line with the current industry demands.

Several studies have brought to light the threat that automation and innovative technologies like Artificial Intelligence (AI) and Machine Learning (ML) pose to the jobs of blue-collared workers.