Infosys suffers attrition attack

Infosys had a close third-quarter combat with attrition in the October- December period. Amid recent high- profile exits- including that of director and former chief financial officer ( CFO) V. Balakrishnan and director and global head of manufacturing and engineering services Ashok Vemuri- since co- founder and executive chairman N. R. Narayana Murthy returned, Infosys struggled to retain talent at mid and junior levels with 1,823 resignations in the third quarter.

Third- quarter results announced on Friday showed that Infosys added 6,682 employees on gross level in the quarter, but the total headcount was lower by 1,823 at 1,58,404 people. The attrition rate was 18 per cent as against 17.3 per cent in the second quarter- the highest in the past two years. The attrition rate was 15.1 per cent in the third quarter of the previous fiscal.

Nine senior-level executives resigned in the last seven months.

However, chief executive officer and managing director S. D. Shibulal said, "The organisation is definitely going through a transformation. This is a large corporation with 1.6 lakh employees. Even if I assume that we have one per cent of the people as leaders, that is 1,600 people," he said.

Other numbers for the third quarter came as a relief with Infosys almost meeting Street expectations on dollar revenue growth. Besides, revision of fullyear growth guidance upwards cheered up investors. Revenues in dollar terms increased 1.7 per cent over the September quarter to $ 2.1 billion. In rupee terms, revenues totalled  Rs 13,026 crore, an rise of just 0.5 per cent.

Infosys reported a 21.4 per cent rise in quarterly net profit of  Rs 2,875 crore for the quarter compared to Rs 2,369 crore in the year- ago period.

Infosys revised its full-year revenue outlook upwards to a growth of 11.5- 12 per cent from 9- 10 per cent seen earlier.

Courtesy: Mail Today