IT firms still face labour pangs

Major information technology firms saw an increase in attrition rates during the quarter ended June 30, 2005, over the quarter ended March 31, 2005.

Polaris Software (16.80 per cent), Satyam Computers (16.68 per cent), Infosys Technologies (9.8 per cent) and Tata Consultancy Services (8.2 per cent) were among the top firms to see a higher attrition during the quarter.

Staff exodus, however, declined for Patni Computer Systems at 9.2 per cent for the quarter against 19.6 per cent in previous quarter ended March 31, 2005.

Domestic IT companies, however, also added a total of 11,356 personnel during the quarter. Infosys topped the list with 3,056 hirings, TCS 2,997, Wipro 2097, Satyam 1,341, HCL Technologies 1,122, Patni Computers 451, MPhaSis BFL 202 and Hexaware Technologies 243 employees during the quarter. Analysts attributed the trend to the increasing number of multinational subsidiaries and aggressive hiring by local IT providers.

The attrition levels at Satyam Computers ruled at 16.68 per cent during the quarter under review, up from 16.50 per cent recorded during the March quarter last fiscal.

The IT major's total headcount stood at 20,505 in the main computer services division, while its backoffice service subsidiary, Nipuna, added 245 employees, increasing its total headcount to 1,612.

Contrary to the increase in attrition rates, Satyam Computers added 31 new clients during the June quarter. The company, as per its guidance for 2005-06, was expecting to recruit around 4,000-4,500 employees, in an attempt to bring down attrition levels to 10 per cent.

IT bellwether Infosys Technologies was also not spared during the quarter.