Product details

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Abstract

The case describes the various reasons for the rapid increase in the attrition rate in the Indian IT industry. In the first half of 2022 attrition was 20 percent on average across sectors and was the highest at 24.4 percent in the Indian IT sector. The case first touches upon the attrition woes in the US leading to what came to be known as 'The Great Resignation'. The case then describes the state of affairs in the Indian IT sector post COVID-19 and the reasons for high attrition such as external inequity of compensation, limited growth opportunities, and role stagnation. The case then touches upon the various initiatives taken by Indian IT major companies such as Infosys, HCL, TCS, and Wipro, to control their attrition rates. However, these initiatives impacted operating margins since higher employee benefit expenses, sub-contracting costs, and travel expenses pushed up the overall costs. The question was which of these companies would be able to continue to optimize various cost levers to drive efficiency in operations while at the same time ensuring employee retention? Will the efforts lead to a standard solution to attrition problems across all major companies and enable the IT sector to gear up for the future?

Time period

The events covered by this case took place in 2021-2023.

Geographical setting

Region:
Asia

Featured companies

Infosys Limited
Employees:
10000+
Turnover:
USD 16 billion (2022)
Type:
Public company
Industry:
Technology & communications
Other keywords:
Infosys; HCL Technologies; Tata Consultancy Services; Wipro; Promotion; Non-compete clause; Variable pay; Hybrid model; Employee benefits; Organizational culture; HR policies; Herzberg two-factor theory
HCL Technologies Limited
Employees:
10000+
Turnover:
USD 11 billion (2022)
Type:
Public company
Industry:
Technology & communications
Tata Consultancy Services
Employees:
10000+
Turnover:
USD 25.7 billion (2022)
Type:
Public company
Industry:
Technology & communications
Wipro Limited
Employees:
10000+
Turnover:
USD 10.8 billion (2022)
Type:
Public company
Industry:
Technology & communications

About

Abstract

The case describes the various reasons for the rapid increase in the attrition rate in the Indian IT industry. In the first half of 2022 attrition was 20 percent on average across sectors and was the highest at 24.4 percent in the Indian IT sector. The case first touches upon the attrition woes in the US leading to what came to be known as 'The Great Resignation'. The case then describes the state of affairs in the Indian IT sector post COVID-19 and the reasons for high attrition such as external inequity of compensation, limited growth opportunities, and role stagnation. The case then touches upon the various initiatives taken by Indian IT major companies such as Infosys, HCL, TCS, and Wipro, to control their attrition rates. However, these initiatives impacted operating margins since higher employee benefit expenses, sub-contracting costs, and travel expenses pushed up the overall costs. The question was which of these companies would be able to continue to optimize various cost levers to drive efficiency in operations while at the same time ensuring employee retention? Will the efforts lead to a standard solution to attrition problems across all major companies and enable the IT sector to gear up for the future?

Settings

Time period

The events covered by this case took place in 2021-2023.

Geographical setting

Region:
Asia

Featured companies

Infosys Limited
Employees:
10000+
Turnover:
USD 16 billion (2022)
Type:
Public company
Industry:
Technology & communications
Other keywords:
Infosys; HCL Technologies; Tata Consultancy Services; Wipro; Promotion; Non-compete clause; Variable pay; Hybrid model; Employee benefits; Organizational culture; HR policies; Herzberg two-factor theory
HCL Technologies Limited
Employees:
10000+
Turnover:
USD 11 billion (2022)
Type:
Public company
Industry:
Technology & communications
Tata Consultancy Services
Employees:
10000+
Turnover:
USD 25.7 billion (2022)
Type:
Public company
Industry:
Technology & communications
Wipro Limited
Employees:
10000+
Turnover:
USD 10.8 billion (2022)
Type:
Public company
Industry:
Technology & communications

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