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Infosys attrition reduces to 27.1%, hiring drops 52.6% in Q2

Infosys attrition reduces to 27.1%, hiring drops 52.6% in Q2

Infosys CEO & MD Salil Parekh said the company expects attrition to trend along downward trajectory for the upcoming quarter. 

Infosys attrition reduces to 27.1%, hiring drops 52.6% in Q2 (Photo: Reuters) Infosys attrition reduces to 27.1%, hiring drops 52.6% in Q2 (Photo: Reuters)

Country’s second-largest software exporter Infosys saw its attrition rates decrease 1.3 per cent to 27.1 per cent in the second quarter of FY23 compared to 28.4 per cent in the previous quarter.

Meanwhile, the company hired lesser number of people this quarter, 10,032 to be precise, down from 21,171 people in the previous quarter, marking a 52.6 per cent quarterly drop in hiring. Total headcount at Infosys stood at 3,45,218. The company hired 40,000 freshers in the first six months of this calendar year. 

Infosys CEO & MD Salil Parekh said the company expects attrition to trend along downward trajectory for the upcoming quarter. 

“Attrition has been decreasing for three quarters on a quarterly annualized basis. We have seen a steady increase in our engagement score with employees across the company. We have seen a real connect which people, there is a new set of policies and initiates that our HR team has rolled out for leadership development, skilling for making sure that there is much more awareness and support during Covid both from a medical and also from mental health perspective,” he said. 

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On a year-on-year basis, attrition rate is significantly high as it recorded 20.1 percent for the September quarter last year. 

“There were several initiatives that our HR team has rolled out for the last 12-18 months. One of them for example is a well-defined path in terms of career in the first several years of an employee and those steps are clearly defined and well understood. That is a big positive for employees. There are no surprises any more for them. There is a lot of emphasis on leadership development and skilling program which the company runs with large global universities, which helps employees self-improve. We have an online platform which allows employees to do it,” he said.

On Wednesday, Wipro said its attrition continues to moderate for the third quarter in a raw. “In Q2, attrition was down to 23 per cent on the trailing 12 months basis. Our quarterly annualised numbers are trailing even lower than that. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition. We expect further moderation in Q3,” he said. While attrition rate rose 2.5 per on a year-on-year basis for the company, it fell 0.3 per cent on a quarter-on-quarter basis. The rate was 23.30 per cent in the April to June quarter of FY 2022-23. 

Infosys, on Thursday reported an 11.10 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,021 crore in September quarter compared with Rs 5,421 crore in the corresponding quarter last year. 

The Bengaluru-based company narrowed its revenue and operating margin guidance for FY23. It announced an interim dividend of Rs 16.50 per share, valuing Rs 6,940 crore. Besides, its board approved a share buyback proposal worth Rs 9,300 crore. 

Published on: Oct 13, 2022, 6:54 PM IST
Posted by: Tarab Zaidi, Oct 13, 2022, 6:50 PM IST