IT’S unexpected gain from crisis: Lower attrition rate Wait and

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In what seems to be a blessing in disguise for the information technology industry, attrition rate has drastically fallen. The attrition rate in IT-enabled services and the BPO sector from a high of 60 per cent last year has descended to just 20 per cent this year.

According to a study by the Associated Chambers of Commerce and Industry of India (Assocham), the rate of attrition at all levels of the organisation has seen a fall ranging between 45 and 50 per cent between January and June this year, mostly due to a fragile global economy. At present, the An uncertain economic environment has compelled employees to adopt a wait-and-watch policy attrition rate is 15 to 20 per cent, while it was 55 to 60 per cent last year. Assocham representatives interacted with about 300 job consultants and HR specialists in various companies in the domain of IT, ITeS and BPO at six leading centres — Hyderabad, Bengaluru, Chennai, Gurgaon, Noida and Pune — to ascertain the extent of movement in job market.

“An uncertain global eco- nomic environment together with cross-currency fluctuation has compelled employees to adopt a waitand-watch policy leading to a sharp decline in the attrition levels in the IT-BPO sector that has been grappling with talent crunch for quite some time,” said D.S. Rawat, secretary general of Assocham while releasing the findings of the study.

The fall in the attrition levels is proving to be fruitful for the organisations as expenses incurred on recruitment of new staff together with their training and orientation process and more importantly, the amount of time spent have reduced drastically, highlights the survey.