There was a time when one read about the Great Depression and later the Great Recession. However, the pandemic has given rise to a new term – the Great Resignation. This has been the buzzword abroad and many tech giants were worried with the latest trend. But looks like the Indian IT industry is not oblivious to this latest development.
Be it for higher salaries, work-from-home opportunities, or career progression, IT employees have been shifting jobs more than usual in the post-pandemic world. Ironically, the word was coined in the US in 2020-21 with many leaving for better or alternate prospects, the Indian IT industry has also been impacted by it in the past two years.
Large IT companies like Wipro, Infosys, TCS have reported high attrition rates for the fiscal year 2021-22 with TCS and Infosys reporting 15.3 and 25.5 percent respectively in the third quarter, while Wipro reported 22.7 percent in the second quarter. However, this is not a problem just for big companies, even small companies are facing a crisis as people are leaving for better positions and a better paycheque.
However, Bharani K Aroll, president of Hyderabad Software Enterprises Association (HYSEA), says that such attrition levels are common when there is demand. He points out that this was a trend in 2011, and it is repeating now. While the 20% attrition is common during such times, Bharani says it is a temporary phenomenon and assures it will die down soon.
Some of the main pulls for attrition include better compensation, lateral shifts even in a large company, flexible working hours, positions available locally, career progression wherein employees get to work on the latest technology, and lastly upskilled employees looking for new prospects.
According to one founder-CEO of a tech company, companies are witnessing an average of 50 percent of the employee base either resigning or relocating and they are being forced to work with one-fourth of the workforce even as the number of projects is growing. There is an obvious talent crunch, she reiterates.