Infosys, TCS, Wipro: IT majors witness drop in attrition in Q1 FY24 amid slowdown in hiring

Major Indian IT services companies– Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, among others– declared their Q1 FY 2023-24 results earlier this month. An interesting trend that emerged from their disclosures was the fact that attrition in all these companies reduced amid slowdown in hiring.

Tata Consultancy Services

Attrition at TCS came down to 17.8 per cent in Q1 FY 24, down 230 basis points from 20.1 per cent, which was recorded last quarter. The net employee addition also drastically fell, with only 523 new additions during the period. On the other hand, TCS had added 14,136 employees in the year-ago quarter. 

Chief Human Resources Officer Milind Lakkad hinted at hiring remaining muted in the upcoming quarters as well.

“Our focus will be on leveraging the capacity we built last year," Lakkad said,” Lakkad said.

Infosys

Attrition at Infosys also witnessed a steep decline. The figure came down to 17.3 per cent in Q1 FY 24, 360 basis points down sequentially. Attrition in Q4 FY 23 was at 20.9 per cent. Net employee headcount went down around 7000 as compared to Q4 FY 23, as per regulatory filings.

Chief Financial Officer Nilanjan Roy noted that the company is focussing on higher employee utilisation amid cost optimization in the upcoming quarters.

“Q1 operating margins were resilient in an uncertain macro environment on the back of our continued focus on cost optimization. Company’s rigorous operational discipline including improved productivity measures and higher utilization helped margins for the quarter,” said the CFO.

Wipro

The employee attrition at Wipro stood at 14 per cent in Q1 FY 24. This number is the lowest in the past eight quarters. Moreover, net employee headcount at the IT company also witnessed a dip by over 8000 people as compared to the year ago quarter.

The company said in a statement after the announcement of Q1 FY 24 results, “Voluntary attrition has continued to moderate QoQ, coming in at an 8-quarter low of 14 per cent in Q1’24.”

HCLTech

HCLTech reported a decline in its attrition rate in the first quarter of FY 24. Attrition rate stood at 16.3 per cent for Q1 FY 24, down over 300 basis points from 19.5 per cent in the previous quarter ended March 2023. The company’s total headcount as of June 2023 was 2,23,438, down by 2,506 sequentially.

Also Read: Layoffs at Meta India: Employees in marketing, admin, HR fired

Also Read: Amazon defers offer letters of campus hires from IITs/ NITs