Attrition continues to hound IT bellwethers 5-6 quarters down the line

Though companies are saying they are managing supply side constraints by hiring more freshers and by subcontracting, exits is clearly impacting margins and profitability

The attrition rate at Infosys touched a record high of 27.7 per cent in the fourth quarter of FY22 on an LTM (last twelve months) basis, the company revealed on Wednesday. Recently, India’s largest IT services player Tata Consultancy Services (TCS), too, recorded record attrition in the March quarter at 17.4 per cent.

Attrition in the IT services industry has been going up over the last 5-6 quarters because demand has returned and companies are rushing to hire talent.

In Q3FY22, Infosys had reported an attrition rate of 25.5 per cent; in Q4FY21, the figure was 10.9 per cent.

“Attrition is 27.7 per