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Why Attrition Rate is High in IT Industry 2025

Why Attrition Rate is High in IT Industry
Table of Contents

Attrition Rate is the percentage calculation of employees who leave a company or an organization. Mainly, it happens because of inappropriate working environments, heavy workloads, job insecurity, less future scope, lack of career opportunities, no job satisfaction, less income, and many more. Currently, the IT sector has the highest attrition rate as compared to other sectors in India with 23% in 2022-23 according to a business today report.

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Indian Company having Top Attrition Rate

In the Indian IT sector attrition rate is increasing day by day, here are some common factors on which the Attrition Rate depends:

1. Cognizant

Cognizant is an American multinational company established in 1994 having the highest attrition rate in India with 29 percent in the first quarter of 2023.

2. Infosys

Infosys Limited established in 1981 is the top Indian IT company that has the highest attrition rate in the Indian IT Industry as compared to others with an Attrition Rate of 28.4 percent in the first quarter of 2023.

3. Tech Mahindra

Tech Mahindra is an IT Company established in 1986 to provide services and consulting having an Attrition rate of 24 in the first quarter of 2023.
 

4. Wipro

Wipro is one of the top Indian IT leading companies which has the highest attrition rate in the Indian IT Industry as compared to others with an Attrition Rate of 23.3 percent during the quarter of January 2023 to March 2023.
 

5. Happiest Minds

Happiest Mind is an IT Company founded in 2011 by Ashok Soota. It has also the top attrition rate in the IT sector with 22.7 during the first quarter of 2023.

 

6. HCL Technology

HCL Technologies Limited is well known Indian IT company founded in 1976 by Shiv Nadar. It has calculated an attrition rate of 21.9 in the first quarter of 2023
 

7. L&T Technology

Larsen and Toubro Limited is an Indian multinational company founded in 1938 in Bombay. It has an attrition rate of about 17.5 in the first quarter of 2023.
 

8. TCS

Tata Consultancy Services Limited is a part of the Tata Group and operates in 150 locations across the world having a market capitalization of more than 200 billion US$. It is also one of the companies with the highest attrition rate in the Indian IT Industry as compared to others. It has an Attrition Rate of 19.7 percent during the first quarter of the year 2023.

Attrition Rate Calculation

Attrition Rate Calculation can be done monthly, quarterly, and yearly with the following details:
  • Find out the Total number of employees at the beginning of the month quarter or year, let be
  • Find out how many new employees were added to the organization in this period, let be.
  • Determine the total number of employees in the organization at the end of this period, let be T.
  • Calculate several attrition, i.e. number of employees left during this period in this organization, let be L.
  • Calculate Average number of employees:
  • Calculate Attrition Rate in Organization:

Understand with an example,

Let 150 employees be at the beginning of the month in the organization. 10 employees left the organization, and 20 new employees were added, which resulted in 160 total employees at the end of the month.
 
Average= (150+160)/2=155

Attrition Rate= (10/155) X 100= 6.45%

Therefore attrition rate will be 6.45% 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:
1. Startups: Today’s Indian youth mostly move by learning and gaining organizational experience from companies to start their startups to fulfill their life dreams and goals. Youth are more passionate about their startup nowadays in India and various digital tools, technologies, and motivators instigate them toward starting their own

2. 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.

3. Job Insecurities: It is a state of mind when an employee feels uncertainty about continuing the working profession. It happens when employees experience about company’s economic downfall, management change, and several other

4. Working Condition: Inappropriate Working environment leads to Attribution. It occurs when employees experience dangerous environments, bad facilities, company employee behavior, outdated technology, lack of resources, and many more factors.

5. 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 catch more flexible opportunities.

6. Technology: In this modern era, IT employees have been replaced with different tools and technology with technological improvements. It allows increment in company capital growth and management work more easily and in a faster manner.

7. Distance: Distance between the company workplace and personal home is a very important consideration in Switching Jobs. Employees prefer near the workplace which allows them to save time and money.

Problem faced by an Organization after Attribution

✓ Replacement: Finding an adequate new replacement is not easy for the previously experienced employee having the same skills. It required lots of time and money to implement.

✓ Project Incompletion: Sometimes a project is incomplete and hard to meet deadlines according to the client. It is hard to continue for a new one from where it ends, which requires time to visualize and analyze, may they have to begin work with starting.

✓  Hiring: The company has to hire new employees to fulfill the needs and provide training during this period of time and have to pay which require cost and time which affects the company capital.

Conclusion

In this modern world, IT plays crucial role in country growth. There is lots of reason and circumstances due to which attrition rate is increasing in Indian IT sector. Here we discuss about some common reasons and why it is happening. As per recent report company raised hiring about 50,000 in first quarter of 2023. Attrition rate in IT sector increment depends upon both company behavior and employee needs.

FAQ

Q1. Why do so many people leave IT jobs?
Ans. Well, IT jobs often come with long hours, high stress, and better offers from other companies, making people switch frequently.
Q2. Does low pay cause high attrition in IT?
Ans. Not always. While pay matters, lack of work-life balance and career growth are also big reasons why people leave.
Q3. Which IT jobs have the most attrition?
Ans. Roles like software development, tech support, and testing often see more people quitting due to workload and burnout.
Q4. Can flexible work hours reduce IT attrition?
Ans. Yes, giving employees more flexibility helps reduce stress, making them less likely to leave.
Q5. How can IT companies keep their employees?
Ans. By offering better career growth, fair pay, and a healthy work culture, companies can reduce the chances of people quitting.

  • Shishir
  • IT

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