Attrition woes continue at Infy

Venkatesh Ganesh Bangalore | Updated on July 11, 2014


Over 10,000 employees left the software major during the first quarter

Infosys will take another 3-4 quarters to curb attrition, which is at an all-time high with around 10,627 people having left the company in the first quarter of 2015 fiscal.

In the first quarter, Infosys reported attrition of 19.5 per cent, which is higher than the 18.7 per cent that the company reported at the end of the fourth quarter of 2014 fiscal year.

The company has taken several measures such as start a fast track career programme, reducing variable pay component in an employee’s salary, promotions and re-training employees (at Infosys Labs in Mysore) in areas such as IT infrastructure management, to contain this high attrition. “All these measures will bring attrition down,” said CEO and Managing Director SD Shibulal, who will be handing over the mantle to Vishal Sikka on August 1.

Analysts, however, are not convinced with these measures to arrest attrition. “The problem is not handing out promotions, high variable pay and such things but that of employee morale,” said Sundararaman Viswanathan, Manager – Consulting, Zinnov.

He added since team heads are leaving the company, the members do not have anyone to look up to and as a result quit.

Sanchit Vir Gogia of Greyhound Research opined that it’s important to remember there’s no magic wand to solve such issues and it can take 2-3 quarters before this can be normalised.

Infosys on its part is trying to address these issues and at the same time ensure that client focus remains and employee productivity goes up. Other plans include improved training programmes and assessment processes for employees to improve software delivery and keep track of their productivity on a daily basis through the use of technology, NR Narayana Murthy, founder and non-executive chairman of Infosys, told shareholders at its 33rd AGM.

All this is starting to bear fruit and the company has seen utilisation levels go up to 80.1 per cent, which is almost 10 percentage points higher compared with the fourth quarter of 2013 fiscal when utilisation stood at 70.9 per cent.

Published on July 11, 2014

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