The trend of high attrition rates seems to be uniform for IT companies in the third quarter. However, Cognizant, the US- based tech company, has fared worse than the rest in the industry when it comes to attrition. The Company witnessed an attrition rate of about 33 per cent in the third quarter of FY2021. Yet, the Company was able to register a net profit of 56 per cent in the last financial quarter.
Comparatively, attrition for Infosys, Wipro and Tech Mahindra stood at an average of 20 per cent. TCS posted an attrition rate of 11.9 per cent.
In a bid to make up for the high attrition rate, Cognizant added 17,200 new employees during the time frame. The total headcount of Cognizant now stands at 3.18 lakhs, globally. However, the head count of the company, when compared to 2020 is still greater than 35,000.
In order to deal with the demand and supply issue in talent, IT companies are coming up with solutions of their own. Cognizant is also employing strategies to curb the mass talent exodus.
Brian Humpharies, CEO, Cognizant, has revealed that the Company will be rewarding its employees with higher bonuses, as compared to 2019. Further, the company plans on incorporating wage hikes and promotions.
Humpharies also said that the Company will be increasing its hiring in India, which already holds the largest share of its employees. Cognizant plans to hire 45,000 graduates from India in 2022.