Leaving jobs is common this year, especially in the IT sector, and this is happening more than ever before. The IT industry in India is going through a phase where employees are switching jobs frequently, and the term that perfectly describes this trend is attrition. It is not just about people wanting change, it is about a deeper shift in how professionals view their careers.
Attrition rate measures the percentage of employees who leave a company over a specific period, impacting productivity and costs. High attrition is affecting many companies, whether it is a big or small.
This becomes a major concern in the IT field, and to draw your attention towards this issue, we have created this blog to discuss Why Attrition Rate is High in IT Industry in 2025, so let’s begin.
What Is Attrition Rate?
Before continuing this blog, let’s understand what “attrition rate” really means. In simple words, attrition rate is the percentage of employees who leave a company over a certain period, and who are not replaced right away. It has many reasons, like resignations, retirements, or even employees shifting to other career paths.
For example, if a company had 100 employees at the start of the year and 15 people left by the end without being replaced, the attrition rate would be 15%. It’s like a silent signal showing how many people are choosing to walk away—and it says a lot about what’s happening inside the organisation.
High attrition usually points to problems like job dissatisfaction, lack of growth, or better offers elsewhere. In the IT industry, this rate has been climbing fast, especially in recent years.
Indian Companies Having High Attrition Rate
- Wipro:
Wipro had an attrition rate of 15.3% in FY24. The company is working hard to reduce employee turnover by improving work culture and offering growth opportunities. Though the rate is still above average, Wipro shows steady progress.
- Infosys:
Infosys recorded an attrition rate of 14.1% in FY24. Thanks to its strong training programs and global projects, Infosys maintains relatively low turnover, helping keep its workforce stable and motivated.
- Tata Consultancy Services (TCS):
Tata Consultancy Services (TCS) reported an attrition rate of 13.3% in FY24. TCS’s wide range of projects and career growth options play a big role in keeping attrition low compared to other big IT firms.
- Tech Mahindra:
Tech Mahindra saw an attrition rate of around 11.8% in FY24. The company’s focus on employee engagement and flexible work arrangements has helped reduce turnover after higher rates in previous years.
- HCL Technologies:
HCL Technologies had an attrition rate of 13% in FY24. The firm emphasizes employee skill development and internal mobility, which supports employee retention despite fierce competition in the IT job market.
- Cognizant India:
Cognizant India faced an attrition rate of 15.9% in FY24. This relatively high rate suggests the company still faces challenges in retaining talent, as employees explore better pay and roles elsewhere.
- Mindtree:
Mindtree experienced an attrition rate of 14.3% in FY24. Since merging with L&T Infotech, the combined company has been focusing on improving workplace policies to offer better career growth and reduce attrition.
- L&T Infotech (LTI):
L&T Infotech (LTI) reported a 14.3% attrition rate in FY24 as well. LTI is strengthening its employee engagement and benefits to lower turnover and compete better for top talent.
- Persistent Systems
Persistent Systems had an attrition rate of 11.5% in FY24. Known for a dynamic work environment, Persistent is investing more in employee satisfaction and training to manage attrition more effectively.
- Capgemini India:
Capgemini India reported an attrition rate of 15.7% in FY24. Despite being higher than some competitors, the company is actively working to bring this number down by offering hybrid work models, upskilling programs, and career growth opportunities to improve employee retention.
How To Calculate Attrition Rate?
Step 1: Identify the Number of Employees Who Left
The first step is to count the total number of employees who resigned, retired, or left the company during your selected time.
Step 2: Calculate the Average Number of Employees
Now, add the number of employees at the start and end of the period, then divide by 2 to find the average.
Step 3: Use the Attrition Rate Formula
Divide the number of employees who left by the average number of employees, then multiply the result by 100.
Step 4: Interpret the Result
The final percentage tells you how often employees are leaving, helping assess HR effectiveness and organisational health.
Let’s understand with an Example
Let 150 employees be at the beginning of the month in the organization. 10 employees left the organisation, which resulted in 140 total employees at the end of the month.
Average= (150+140)/2=145
Attrition Rate= (10/145) X 100= 6.89%
Therefore attrition rate will be 6.89% this month.
Reason Why Attrition Rate Is High In IT Industry?
There are lots of reasons and circumstances due to which it is increasing every year. Here we discuss some of the few:
- Startups:Today’s Indian youth mostly move by learning and gaining organisational experience from companies to start their startups to fulfil their life dreams and goals. Youth are more passionate about their startup nowadays in India, this is one of the main reasons for leaving a company.
- Income Increment:Experienced people and developing age combine them with different life and family responsibilities, which increases the demand for having more and more income. if they get better opportunities, they prefer to switch Jobs.
- Job Insecurities:It is a state of mind when an employee feels uncertainty about continuing in the working profession. It happens when employees experience about company’s economic downfall, management change, and several other reasons.
- Working Condition:An Inappropriate Working environment leads to Attribution. It occurs when employees experience dangerous environments, bad facilities, company employee behaviour, outdated technology, lack of resources, and many other factors.
- High Workload:When a company’s number of responsibilities increases or the deadline period is not certified according to the given work, employees face heavy workload conditions. It allows them to look for more flexible opportunities.
- Technology: Another main reason is the advancement of technology; many IT jobs are being replaced by tools and software. Technology also helps companies grow faster and work more efficiently.
- Distance:The distance between the company workplace and personal home is a very important consideration in Switching Jobs. Employees prefer to live near the workplace, which allows them to save time and money.
Problem Faced By An Organization After Attrition
- Replacement Delays
It is not just about hiring someone with the same qualifications, but someone who also fits into the team and understands the company culture. This gap can lead to slowed-down workflows and missed targets.
- Project Incompletion
When employees leave projects in the middle, it often leads to disruption. Important tasks might be left unfinished, and new joiners may struggle to understand the project clearly. This can delay project timelines, impact quality, and even cause loss of client trust if delivery deadlines are missed.
- Costly Hiring Process
High attrition leads to repeated hiring efforts. From job postings and interviews to onboarding and training, every step takes time and money. This rehiring not only increases HR workload but also increases the operational costs, especially when done in a hurry.
- Team Imbalance
Attrition often creates gaps in team structure. When experienced members leave the company, a team imbalance creates that affect collaboration and decision-making processes.
- Training Time for New Employees
New hires need proper training to understand their roles. Until they are fully ready, team performance may drop, slowing down operations.
Final Thoughts
So, we now know all about attrition rate, and why attrition rate is high in IT industry 2025. Employees are leaving their jobs for better career opportunities, for career growth and better work-life balance.
The increasing attrition rate can cause hiring delays, high cost on hiring, project delays and team imbalance etc. and to solve this problem, companies are required to understand the employee requirements, providing them growth opportunities, and create a better workplace environment.
FAQs
Q.1 What is a good attrition rate for the IT industry?
Ans: A good attrition rate varies by industry, but for IT, it’s typically around 10-15%. Rates above 20% can indicate underlying issues.
Q.2 What are the reasons behind high attrition rates in the IT industry?
Ans: High attrition rates in IT are due to lack of growth, poor work-life balance, job insecurity, and better job offers elsewhere.
Q.3 Which sectors are driving attrition rate trends in the IT industry?
Ans. Retail, manufacturing, and BFSI sectors are driving attrition rate trends due to reviving demand and workforce strategies.
Q.4 How does attrition rate impact company culture?
Ans. High attrition rate can negatively impact company culture by creating uncertainty, reducing morale, and disrupting team dynamics.
Q.5 How can companies measure employee satisfaction?
Ans. Companies can measure employee satisfaction through surveys, feedback sessions, and exit interviews to identify areas for improvement.
