Appreciating rupee triggers exodus in IT firms
Indian IT companies, grappling with an appreciating rupee eating into their profits, are also finding it hard to retain employees with the top-four firms TCS, Infosys, Wipro and Satyam witnessing an exodus of about 10,000 people in the first quarter.
Although, all the four firms collectively hired more than 25,000 employees in the April-June period, the net addition was just about 16,300 -- taking their total headcount to 2,85,357 employees.
Except for Satyam Computers, attrition rate went higher at Infosys, Tata Consultancy Service and Wipro from both the previous quarter as well as the year-ago period.
All the four companies reported an adverse impact of rupee rise on their profitability and margins, and are looking at various hedging measures, which include improving employee utilisation rates.
However, analysts believe the high attrition rates, mostly triggered by employees seeking higher salaries, could adversely impact the companies' plans to improve utilisation rates.
TCS, the biggest in terms of revenue as well as headcount, saw an exodus of about 2,500 employees, while just over 2,000 people quit the country's second largest software exporter, Infosys.
The employee loss is estimated to be much higher at about 3,500 at Wipro, the country's third-biggest IT firm, while Satyam, the smallest of the four, saw the lowest number about 1,600 people leaving.