The high attrition rate has become a major concern for IT companies, like Tech Mahindra. Its attrition rate grew from 17% in April to June quarter to 21% in the last quarter.
To deal with this high percentage, the company has decided to turn toward tier 2 cities including Kolkata, Chandigarh, Bhubaneshwar, Thiruvananthapuram, and Nagpur for hiring fresh talent. Along with cross-skilling, and upskilling of the existing talent pool, they will also be looking for new employees in its overseas markets.
In the second quarter, Tech Mahindra performed the hiring of over 14,000 people making its employees count to reach over 1,41,000.
According to Tech Mahindra’s Managing Director and CEO, CP Gurnani, the company was expecting an attrition rate of around 15 to 18%, but 21% was way more than they estimated. Now, they are ready to reach out to new talent in tier 2 cities, overseas markets. Currently, in Mexico Tech Mahindra has four development centers.
Recently, the IT major added around 300 experienced employees to its workforce with the acquisition of Lodestone. This California-based company is expected to enhance Tech Mahindra’s capabilities in experience design, and digital engineering. Along with that, it also possesses a development center in Ahmedabad.
Mr. Gurnani said that they have been hiring people in the senior management cadre for the last 18 months. The company is focused on hiring more people who belong to the digital field, to increase the tech quotient of the firm.
He added that the 5G technology has been a major growth driver for them recently. Even its customers have started spending more on technology.
According to Gurnani, Tech Mahindra will be seen working with telecom operators having 5G licenses. They will also be developing IoT solutions and 5G-based campus area networks to help organizations become more efficient, and increase the number of smart factories, hospitals, and airports.