Checking attrition, a big challenge

Our Bureau Mumbai | Updated on January 21, 2011

One of the challenges for the new owners of Patni Computer Systems would be to control attrition at the Mumbai-based company.

Patni, which had a reported attrition of 26 per cent for the quarter ended September 2010, is faced with the double challenge of a promoter change and rising demand for qualified software professionals.

“Both companies must reduce their attrition rates which are far above average and if left at these levels, it would create major problems. It is critical that the top performers are retained, even as the integration happens,” said Mr Peter Schumacher, Chief Executive Officer of advisory firm Value Leadership Group, told Business Line.

iGATE's September quarter attrition was between 16-18 per cent

Some analysts are of the view that attrition at Patni could further go up due to the stake sale.

“Patni's current top management and staffers will look out, and they will find takers in the current high-growth market where all top providers are recruiting in a frenzy. We estimate half of Patni's current senior team (managers with over 15 plus years experience) will move out in the coming twelve months and the already-higher-than-industry-average attrition will sky rocket, well above 30 per cent,” said Mr Sudin Apte, Chief Executive Officer of advisory firm Offshore Insights.

However, the Patni management is keen to ensure that the transition is a smooth affair.

“An email communication pertaining to this deal has already gone out from the CEO' desk…in the next few days we will have workshops to clear the doubts of our employees,” said Mr Sunil Chitale, Executive Vice-President and Chief Strategy Officer of the company.

Published on January 21, 2011

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