The exodus in TCS comes despite the company announcing a Rs 2,628-crore bonus for its employees in the March quarter
According to company data, TCS hired 20,302 employees in the June quarter, but net additions stood at 5,279. As of June 30, 2015, the total number of employees in TCS stood at 3,24,935.
TCS attributed the rising attrition to the following factors
1) Seasonality: Some employees quit in June-July to pursue higher courses such as MS, MBA, etc..
2) Scale: TCS is now in the league of global tech giants, and it employs thousands of people outside India. The growing scale in geographies such as Latin America has also added to overall attrition. TCS employs over 14,000 people in Latin America, Mr Chandrasekaran said, and attrition there is higher than in India, which skews the larger picture. "Attrition rate was higher in business process services division and in Latin America," said Girish Pai of Nirmal Bang.
3) More opportunities: The demand environment is stronger than before, especially when compared to last 3-4 years, Mr Chandrasekaran said. This means the job market for IT employees is growing, which leads to poaching of employees. This contributes to attrition.
4) Lag effect: "In India I think broadly it (attrition) is okay, but it is higher than what you have been used to. So we just need to get that under control and to some extent we've got to worry about the lag effect. So we need to look at them," said TCS global HR head Ajoy Mukherjee
5) In the employee pyramid, there was strong attrition in the range of 3-6 years, which has been the trend over the years. Analysts say employees falling under this category are currently in high demand with a lot of start-ups mushrooming around the country
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