Despite the impact on costs and margins, Infosys is planning to give increments to its employees in the hope of bringing down attrition rate.
In terms of hiring, Infosys hired way more than Wipro, Tata Consultancy Services (TCS) and HCL in the first quarter. In fact, it plans to increase its hiring target too.
With the increments, Infosys hopes to improve the attrition situation. Rate of attrition had risen by 70 basis points in Q1 of Financial year 2023. In the fourth quarter of financial year 2022, it was 27.7 per cent, and in the first quarter of financial year 2023, it has risen by 28.4 per cent.
Rising attrition has been a challenge for companies in the tech and IT space. Infosys is not the only one battling high attrition. The attrition rate at TCS was 19.7 per cent, while at HCL Tech it was 23.8 per cent, and Wipro posted an attrition rate of 23.3 per cent.
The workforce strength of the Company stood at 3,35,186 in Q1FY23, as compared to 3,14,015 as on 31 March, 2022. That means, net addition went up by 67,233 from the figure of 2,67,953 posted in June, 2021.
About 3,18,447 members of its workforce are software professionals, while about 16,739 are members of the sales and support teams. Women comprise over 39 per cent of the workforce.
The Company plans to invest in talent strategically. It is hoped that offering competitive salaries will bring down attrition and also prepare Infosys for growth in the future. Meanwhile, it will continue to drive operational efficiency and take measures to optimise costs.