The attrition rate at Tech Mahindra is nearly double that of TCS.

At a time when information technology (IT) companies are experiencing an unprecedented demand for digital transformation across all industries. The attrition rate at Tech Mahindra is nearly double that of TCS.

A shortage of qualified employees is a major issue that is affecting their margins and expenses. 

High attrition rates are not uncommon among information technology companies, and Pune-based Tech Mahindra is no exception.

In fact, it has gotten into a worse situation, with an attrition rate of 21 percent, which is nearly twice as high as that of IT behemoth TCS for the July-September quarter. 

Tech Mahindra has the highest attrition rate of any company in the industry. 

Tech Mahindra has implemented measures such as broad-based raises, promotions, and retention incentives to combat the high rate of employee attrition. These measures have helped to reduce attrition. 

The attrition rate at Tech Mahindra is nearly double that of TCS.
The attrition rate at Tech Mahindra is nearly double that of TCS.

According to the results of a survey conducted by Tech Mahindra on its employees, employees who were leaving the company were primarily from Tier-I cities. 

The attrition rate in some of India’s larger cities, such as Bangalore, Hyderabad, and Pune is extremely high,” says the author. We have also conducted an analysis to determine that attrition is significantly lower in Bhubaneswar and Nagpur than in other locations.

Tech Mahindra’s chief executive officer and managing director, C.P. Gurnani, stated after the company released its earnings results, “We anticipate a certain amount of attrition, and as a result, we plan for hiring, reskilling, and upskilling a little ahead of time.” 

Between July and September, Tech Mahindra hired 14,930 new employees, bringing the company’s total employee count to 1.41 lakh. 

In the most recent three months, the company reported a decrease in profit. The company’s shares, on the other hand, were trading lower in the early hours of trading on October 25, ahead of the company’s earnings report, suggesting that investors had already factored in weak profit growth. 

The profit of the information technology (IT) company fell by a sliver of a percentage point to 1,339 crores in the second quarter. 

Analysts had predicted that profit growth would be flat, with a reportedly marginal increase of 2 percent quarter-on-quarter due to the impact of higher employee costs on margins. Instead, profit growth was reported to have increased by 2 percent. 

According to the earnings release, the company has declared a special dividend of 15 cents per share

Additionally, the information technology company announced the acquisition of California-based Info star (Lodestone), for which it will pay a total consideration of up to $105 million. 

In the digital age, Lodestone is a digital engineering quality assurance provider for digital companies of the future.

Read More: https://wordpress-400837-1534202.cloudwaysapps.com/digital-id-technology-is-advancing-at-a-breakneck-pace-goodid-will-ensure-that-it-does-not-cause-any-problems/


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