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Infosys staff leaving in droves

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Infosys, once a bellwether for India’s US$100 billion-plus IT outsourcing industry, is losing its cachet as the employer of choice for a generation of young IT workers, with staff leaving at an unprecedented pace as the Bangalore-based company struggles to regain ground lost to rivals.

Current and former Infosys staff interviewed by Reuters say morale has been dented by a series of senior management exits

Current and former Infosys staff interviewed by Reuters say morale has been dented by a series of senior management exits and worries about career prospects as the company’s revenue and pay increases grow at a slower rate than at competitors such as Tata Consultancy Services (TCS).

Annual revenue in the year to end-March rose 24 percent, lagging growth of 29 percent at TCS.

The annualised rate of attrition at Infosys – effectively the number of staff leaving or retiring – was a record 18.7 percent at end-March, 2.4 percentage points higher than a year earlier. That’s close to a fifth of the company’s workforce of more than 160,000.

The attrition rate at market leader TCS was 11.3 percent.

That signal is weaker when the number of staff quitting a company rises to uncomfortable levels.

India’s outsourcing services industry has relied for years on an army of engineering graduates to build so-called “bench strength”, key to winning new contracts in an increasingly competitive industry.

A strong “bench” signals to prospective clients that the firm can assign enough technicians to new projects. That signal is weaker when the number of staff quitting a company rises to uncomfortable levels. It also does little to attract new hires in the close-knit IT world. Read more: http://www.itnews.com.au/News/385123,indian-outsourcing-giant-hits-trouble.aspx#ixzz32CPpCRhV
May 19, 2014
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