IT firms report stable attrition in Q2, paving way for campus hiring surge in FY 25
Infosys observed 12.9 percent of voluntary attrition in Q2 FY 25 in the last twelve-month period (LTM) compared to 12.7 percent in the June quarter
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India's leading software-developing firms have continued to witness muted attrition rates in the second quarter of fiscal year 2025, signaling optimism for fresh talent onboarding in the H2 FY25. In the July-September quarter (Q2) of FY 25, Infosys observed 12.9 percent of voluntary attrition in the last twelve-month period (LTM) compared to 12.7 percent in the June quarter. TCS attrition in IT services was 12.3% whereas Wipro's attrition was stable at 14.5% on a quarterly basis.
According to Shantanu Rooj, Founder and CEO at TeamLease Edtech, employees aged between 25 and 35 years, are switching jobs in pursuit of career growth, competitive compensation, and improved work-life balance.
Experts told Storyboard18 that Gen Z professionals have willingness to explore multiple industries and job functions early in their careers, therefore they often leave if they feel stagnant. On the other hand, millennials are more cautious about job-hopping but are quick to move for better compensation, career advancement, or stability.
However, companies have begun to take measures to retain their top talents.
Foundit, a staffing firm revealed that 73 percent of the IT companies are adopting flexible work policies, wellness programs, and remote or hybrid work options to combat attrition.
"Fostering a supportive work environment and offering growth opportunities are key to effective employee retention. A strong retention approach not only helps keep valuable talent but also improves overall team morale and productivity," Sashi Kumar, Head of Sales, Indeed India said.
'Freshers' hiring'
Campus hiring practices have evolved to become more targeted and strategic. TeamLease Edtech's CEO said that IT firms now focus on partnerships with educational institutions to identify and nurture talent early.
During the Q2 earning call, Infosys' Chief Financial Officer Jayesh Sanghrajka said the company will onboard the 15,000 plus freshers. "We have on boarded many of them in the first half, but we are on-track to onboard 15,000 to 20,000 at a group level in FY'25," Sanghrajka added.
Milind Lakkad, Chief HR Officer at TCS said that the company is on track for trainee onboarding as planned. "We have also commenced the campus hiring process for FY26," he added.
According to data from Indeed, IT hiring is projected to grow by 8.5 percent next year.
"Many companies are now blending technical assessments, hackathons, and internships into their hiring process to identify candidates with hands-on expertise in high-demand fields like AI, cybersecurity, and cloud computing," Foundit CEO Sekhar Garisa said.
According to Ankit Aggarwal, Founder and CEO of Unstop basic programming roles, data entry processing jobs, IT support, and helpdesk jobs are becoming obsolete.
"We’ve seen IT companies like Walmart, Juspay, and more connect with fresh talent through engagements that give them an opportunity to assess students on the basis of their skills and then hire them for internships and full-time roles. We’ve also seen an uptick in the packages offered by brands like Flipkart for Tech roles with Rs 32 LPA packages," Aggarwal added.
As per the data by Foundit, IT firms are increasingly prioritizing skills in data analytics, machine learning, and cloud computing for entry-level hires, with strong programming proficiency in languages like Python, R, and JavaScript highly valued. Knowledge of cybersecurity practices and familiarity with DevOps is also sought after. Certifications such as AWS Certified Solutions Architect, Microsoft Azure Fundamentals, and CompTIA Security+ add a competitive edge.
Infosys added 2,456 employees, and Wipro added 978 employees between July and September 2024. TCS said its Net Headcount Addition was more than 11,000 employees in the H1 FY25. And, HCL added about 12,000 freshers in FY24.
Skillsoft’s top 20 highest paying IT certifications report showed that security certifications, particularly with AWS, are highly valued skills given the increasing number of cyber threats companies are dealing with. "Both cloud and infrastructure certifications also continue to be mainstays on our list. Besides, companies are placing more importance on candidates with a blend of technical and soft skills, such as communication, teamwork, and emotional intelligence", Orla Daly, Chief Information Officer, Skillsoft said.
