IT services giant Wipro has decided to promote freshers on a quarterly basis, offer them clear five-year career paths and training as full-stack engineers before joining to make itself more attractive to new talent amid the ensuing technology talent war, which has seen the country’s third largest IT company close 2021-22 with a twelve-month attrition rate of 23.8 per cent.
“We have decided to increase the frequency of promotion cycles for 70 per cent of our colleagues in junior bands to a quarterly basis,” said Wipro CEO & MD Thierry Delaporte on Tuesday after the result announcement.
Calling the move a big shift for Wipro, CHRO Saurabh Govil said: “As we onboard large numbers of freshers, we’ve given them a clear career path, both from a compensation and career standpoint, for the next five years. That’s part of their contract, it’s very visible to them. So, they know how they can manage that.”
He also said that they are working with partners to train them to become full-stack engineers before their joining so that they get a different salary when they come on board compared to when they were hired.
Wipro’s twelve-month attrition number has risen to 23.8 per cent from 22.7 per cent at the end of December 2021, reflecting to an industry-wide trend of steadily rising attrition. Delaporte, however, said the quarterly annualised attrition rate moderated by 500 bps. “But the pressure continues as demand is robust… We have hired a lot of freshers and hired laterally. So, managing demand requirements will not be a challenge for us,” said Govil.
The firm plans to double fresher intake during 2022-23, just like it did in the previous financial year. It plans to hire 38,000 freshers, compared to the 19,000 last year. It added a net 45,416 (including sales and support staff - IT services) employees in FY22, taking its total headcount to 243,128.
On return-to-office plans, Delaporte said: At the end of the day, we want the model to be hybrid. We encourage people to come to the office, but we also recognise the fact that if they prefer to work from home, they can.
"In the US, 80 per cent-plus of our population are locals. It completely eased off our pressure on H1B visas. We will continue to move people based on skill and requirement. But it’s all about building local capability. In the non-English speaking countries in Europe, its (the level) is far more,” said Govil, adding that their approach is to grow in the markets with people who are form those markets.
For the January-March quarter, Wipro’s net income grew 3.9 per cent to Rs 3,090 crore year-on-year. IT services revenue grew 28.5 per cent to a $2.72 billion (Rs 20,400 crore) year-on-year (YoY). For 2021-22, its net income grew 13.2 per cent YoY to Rs 12,220 crore. IT services revenue grew 26.9 per cent on constant currency basis to $10.4 bn (Rs 78,000 crore)
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