Why do Employees leave IT giants TCS, Infosys?

Employees leave IT giants

The attrition rate in IT organizations, mainly in TCS and Infosys, has continuously surged and crossed all the records. The attrition rate is defined as the rate at which employees leave a company. It is also known as the ‘churn rate.’ It is calculated as the number of employees who left their jobs, divided by the average number of employees over the period.

The massive spike in employee leaving rate drastically impacted the performance of Infosys and TCS. Their employees switch companies to get better packages and opportunities that other IT firms usually give to their employees. Even IT companies provide hikes in salary packages and various lucrative employee perks to flock the best employees to their pools.

As a result, prominent IT companies like TCS and Infosys are experiencing a high attrition rate.

• The attrition rate of Infosys and TCS surged to 25.5% and 15.3%, respectively.
The employee leaving rate of TCS rose to 15.3% in Q3FY22, compared to 11.9% in the previous quarter. As per the company’s claim, it was the least in the industry. During the announcement of Q3 results, TCS said that:

“Sustained investment in organic talent development, progressive workplace policies, and a vibrant culture that empowers individuals and fosters creativity have resulted in a long-term track record for best-in-class talent retention.”

IN THE EARNINGS RELEASE, The chief HR officer of TCS, Milind Lakkad, clarified that “IT Giants prefer internal candidates for global deployment opportunities, open positions and career paths for learning to retain its best talent and cover supply-side challenges.

Moving Infosys, the second-largest firm in the country, witnessed a 25.5% attrition rate in the third quarter from the September quarter, which was 20.1% and 11% in YoY. The term YoY stands for year-on-year. The rise in attrition rate is a primary key concern for firms.

On the other side, continuous talent growth has disrupted the demanded-supply balance, prompting the organization to focus on talent attraction and talent retention. The firms also transit their legacy system and establish next-gen platforms and different processes, and talent demand regarding technology skills is enhancing.

Why IT Employees are leaving IT Giants TCS, Infosys:

IT giants- TCS, Infosys

One of the highest-paid sectors is the IT sector. The majority of employees are attracted to get better job opportunities.

• Nowadays, IT startups get good fund sessions. Additionally, these companies have a colossal sum for attracting employees. Due to it, employees from IT giants such as TCS ditch their jobs and move to those companies.
• BESIDES HEFTY SALARY PACKAGES, those IT companies provide endless career growth opportunities to their employees. Employees get several benefits such as transport facilities, health insurance, and many more.

Pravin Rao, who is COO of Infosys, said:

“Startups are the attractive place to many of our candidates. With the surging number of unicorns out there, that sector also enhances focus for some of our employees.”

Besides this, as per the opinion of the chief executive and managing director of TCS “N Chandrasekaran”, there were “various factors” behind numerous employees leaving the company.

Various factors lead to rising attrition factors

Different factors are associated with the rising attrition rate.

1. Seasonality

Some employees leave their jobs mainly in June and July to pursue higher courses or degrees like MBA. They may face problems balancing between degree and career, so they leave their jobs.

2. Scale

TCS has gained the position of a global tech giant, and it has thousands of employees who belong outside of India. Mr. Chandrasekaran said that they hired more than 14,000 employees in Latin America, and the employee leaving rate is high compared to India.

3. Numerous job opportunities

Different companies have different opportunities and policies. The job market, mainly in the IT sector, is expanding. As a result, more job opportunities are waiting for experienced employees. It leads to a high attrition rate.

Due to these three common reasons, employees switch their companies and move to new IT firms. On the other hand, TCS is also taking steps to control this attrition rate.

What steps does TCS take to control attrition?

TCS control attrition

TCS mentions the surging attrition rate as a “key risk” in its annual report and explains that it may also impact growth. TCS also explained that their focus area would be employee engagement. Initially, companies also focused on training employees regarding new technologies and rotatory work assignments to reduce attrition.


Infosys is also witnessing a problem in retaining employees. They plan to roll out an incentive scheme to maintain several employees via digital skills. Along with that, it has also announced solid Q4 earnings to reduce the attrition rate. Here is information about the Q4 performance and Incentive scheme of Infosys that they will implement:

• Infosys Q4 performance:

The primary market of Infosys is America. It announced in the Q4 earnings, which generated a net profit of Rs.4078 crore. It also reported a 19.1 increment in revenue. This firm has also predicted annual growth between 7.5 to 9.5 percentile in constant currency terms.

• Incentive Scheme of Infosys

The incentive scheme will be introduced to reduce the attrition rate. The firm is making a plan for aggressive redeployments in projects. It helps individuals to work on new technologies. Few of the incentives require time to reduce attrition. As per the view of the COO, the attrition rate will decrease to 13-15% level.

Besides this, a few of the strategic investments also support the surging digital capabilities of Infosys. Additionally, Infosys has surged local hiring activities in the US, UK, and Australia. By doing so, they work on reducing the attrition rate to maintain the growth and success of their firm.

Final Verdicts

So, due to all the above-mentioned reasons, employees of TCS and Infosys are leaving their jobs. On the other side, IT giants like TCS and Infosys are making a hundred percent effort to reduce the employment leaving rate. Along with it, Infosys works on incentive schemes and other methods whereas TCS focuses on employment engagements to minimize attrition.


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