Infosys, TCS, and Wipro Experience Decline in Attrition in Q1 FY24, Here’s Why

Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech, among others, announced their Q1 FY 2023-24 results earlier this month. An intriguing trend from their disclosures was that attrition in these organisations decreased when hiring slowed.

TCS: Tata Consultancy Services

TCS attrition was 17.8 percent in Q1 FY 24, down 230 basis points from 20.1 percent the previous quarter. The net employee addition also decreased significantly, with only 523 new hires. TCS, on the other hand, had added 14,136 personnel in the previous quarter. 

Milind Lakkad, Chief Human Resources Officer, warned that recruiting might also be slow in the following quarters. Tata Consultancy Services (TCS), Infosys, Wipro, and HCLTech have decreased net employee additions by over 18000.

Infosys

At Infosys, attrition has also decreased dramatically. In Q1 FY24, the figure fell to 17.3 percent, a 360 basis point decrease. In Q4 FY 23, attrition was 20.9 percent. According to regulatory filings, net employee headcount decreased by roughly 7000 compared to Q4 FY 23.

In the future quarters, Chief Financial Officer Nilanjan Roy stated that the corporation would focus on increased personnel utilisation and cost optimisation.

Wipro

Wipro's staff attrition rate was 14% in the first quarter of fiscal year 24. This is the lowest figure in the last eight quarters. Furthermore, the IT firm's net employee headcount fell by nearly 8000 workers compared to the previous quarter.

"Voluntary attrition has continued to moderate QoQ, coming in at an 8-quarter low of 14% in Q1'24," the business said following the Q1 FY 24 results. Wipro also reported a decrease in staff count of 8,812 people in the June quarter. Wipro's total employee count decreased, hitting 249,758 by the end of the first quarter, down from 258,570 at the end of the previous fiscal year, FY23.

HCLTech

In the first quarter of fiscal year 24, HCLTech reported a decrease in attrition. The attrition rate was 16.3 percent in Q1 FY 24, down from 19.5 percent in the previous quarter ended March 2023. As of June 2023, the company's total headcount was 2,23,438, a decrease of 2,506 from the previous year. The entire workforce on 31 March 2023 was 225,944. On a net basis, the company's headcount has decreased by 2,506 personnel.