IT and Consulting major Accenture’s attrition rate jumped to 17 percent in the third quarter, which was 11 percent in the same quarter of the previous year as demand for new-age skills rose with organizations engaged in enormous digital transformations.
The attrition rate of Accenture was 12 percent for the December to February quarter.
- Cognizant also saw a rise in attrition rate from 19 percent to 21 percent.
- IT major TCS and Wipro had a low attrition rate of 7.2 percent and 12.1 percent, respectively, in the January-March quarter.
- Infosys’s attrition rate jumped to 15.2 percent from 10 percent.
Executives of the company said that numbers are expected to go North as demand rises. The company can compare the numbers with its peers only after April to June quarter numbers will come out.
Julie Sweet, Chief Executive Officer of Accenture, said in a post-earnings conference call with the analysts, “The attrition is ticked up to pre-covid levels in the market although not the highest for the company.”
She said that the attrition rate had gone up due to sustained demand for services from clients who want to transform their businesses.
“The dynamics in the market are not the only recovery from the decreased spending pattern at the onset of the Covid-19 pandemic, but a more sustained growth in demand, as companies rush to modernize and stimulate their digital initiatives with compressed transformation,” she said.
Accenture added over 32000 employees to its workforce in the last quarter, taking the total headcount to 5.69 lakh as of May 31. Company awarded promotions to 117000 employees year-to-date, including 1200 promotions of managing directors.
Accenture had also vaccinated 50000 of its employees, their families, and contractors in India to date.