Bengaluru: Accenture’s attrition jumped up to 17% in its third quarter (March-May), as against 11% in the year-ago quarter, as demand For new age skills Growth with companies engaged in massive digital transformation.
Attrition was 12% in the December-February quarter. The trend is similar to that of Cognizant, whose attrition climbed from 19% to 21% sequentially. Attrition for TCS and Wipro was at a low of 7.2% and 12.1 per cent, respectively, in the January-March quarter. Infosys saw it rise from 10% to 15.2% sequentially. Company officials said the numbers are expected to go north as demand picks up. A better comparison with Accenture would be possible when their April-June quarter figures are out.
Chief Executive Julie Sweet said in a post-earnings conference call with analysts last week, “As we think about attrition, it has now ticked up to pre-Covid levels in a hot market, although it has been the lowest so far. Not the highest level.”
Sweet explained that there has been an increase in job layoffs due to the continued demand for services from customers looking to transform their business. “The dynamics we are seeing in the market are not only recovering from the low spending patterns at the start of the pandemic, but a more sustained increase in demand as companies race to modernize and accelerate their digital initiatives with narrower change. I’m in,” she said.
Accenture added 32,000 people last quarter, bringing its number to 569,000 as of May 31. It provided 117,000 promotions year-on-year, including about 1,200 promotions to managing directors. The company said it has so far vaccinated 50,000 of its employees, their families and contractors in India.
Attrition was 12% in the December-February quarter. The trend is similar to that of Cognizant, whose attrition climbed from 19% to 21% sequentially. Attrition for TCS and Wipro was at a low of 7.2% and 12.1 per cent, respectively, in the January-March quarter. Infosys saw it rise from 10% to 15.2% sequentially. Company officials said the numbers are expected to go north as demand picks up. A better comparison with Accenture would be possible when their April-June quarter figures are out.
Chief Executive Julie Sweet said in a post-earnings conference call with analysts last week, “As we think about attrition, it has now ticked up to pre-Covid levels in a hot market, although it has been the lowest so far. Not the highest level.”
Sweet explained that there has been an increase in job layoffs due to the continued demand for services from customers looking to transform their business. “The dynamics we are seeing in the market are not only recovering from the low spending patterns at the start of the pandemic, but a more sustained increase in demand as companies race to modernize and accelerate their digital initiatives with narrower change. I’m in,” she said.
Accenture added 32,000 people last quarter, bringing its number to 569,000 as of May 31. It provided 117,000 promotions year-on-year, including about 1,200 promotions to managing directors. The company said it has so far vaccinated 50,000 of its employees, their families and contractors in India.
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