IT INDUSTRY IN INDIA
Theorization of Research Topic
Research Design/ Research Methodology
All businesses, large and small, have some way of keeping track of their finances.
Businesses are constantly looking for more ways to keep expenses low.
One factor that is often overlooked, however, is the cost of employee Attrition.
High employee turnover can cost a company more than they might realize in the
Employee Turnover occurs when employees voluntarily leave their jobs and must
Attrition is expressed as an annual percentage of the total workforce.
This study helps the company to understand more on the Attrition rate in the
company, helping them to reduce the employee Attrition.
The study educates the causes for Attrition of employees in an organization.
The study also helps to find the drawbacks of the current retention strategies.
This study will also help the organization to know about the satisfaction level of the
employee on different aspects of the job in order to satisfy.
To identify the rate of Employees Attrition.
To identify the causes of employees Attrition.
To suggest measures to reduce the rate of Attrition.
To study the trend in employee Attrition in IT companies.
Data collected is based on secondary data.
The research exercise was conducted within a limited duration. So a detailed study
could not be made.
The result would be varying according to time.
The study throws light through valuable suggestion to decrease attrition level in the
This study can help the management to find the weaker parts of the employee feels
towards the organization and also helps in converting those weaker part in to stronger by
providing the optimum suggestions or solutions.
This study has a wider for scope in any kind of organization since “attrition” is general
one and makes the employees to put forth their practical difficulties and need factors in
This study can help the management to know for which the reason employees tend to
change their job, through dissatisfaction factors faced in the organization and also helps
to recover by providing the optimum suggestions or solutions.
“EMPLOYEE TURNOVER: PRESENT SCENARIO OF INDIAN IT
INDUSTRY” published by the author Ms.S.Janani in the Indian Journal of Applied
Research Volume: 4 | Issue: 3 | Mar 2014 | ISSN - 2249-555X.
“EMPLOYEE TURNOVER IN IT INDUSTRY WITH SPECIAL REFERENCE
TO CHENNAI CITY-AN EXPLORATORY STUDY” published by the author Mrs.
E. Deepa &Mrs. M. Stella in the International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231-5780.
“EMPLOYEE ATTRITION: INEVITABLE YET MANAGEABLE” published by
the author Ms. Gayatri Negi in the International Monthly Refereed Journal of
Research in Management & Technology Volume II, July’13 ISSN 320-0073.
“ATTRITION IN INDIA – CAUSES & REMEDIES” published by the author Mr.
Savneet Kaur in the International Journal of Emerging Research in Management
&Technology ISSN: 2278-9359 (Volume-2, Issue-6),June 2013.
“INFANT ATTRITION IN INDIAN IT SECTOR: AN INDICATION” published
by the author Dr. Sneha Mankikar in the International Journal of Scientific and
Research Publications, Volume 3, Issue 9, September 2013 1 ISSN 2250-3153.
“A STUDY ON THE EMPLOYEE TURNOVER INTENTION IN ITES/BPO
SECTOR” published by K.R.SreeRekha & Dr.T.J.Kamalanabhan International
Conference - Frontiers of Management – Encore Feb 2013 9th February 2013 -
Chennai, India ISBN No: 978-81-926045-0-3
A reduction in the number of employees through retirement, resignation or death.
Employee Attrition is an enormous problem for any company and creates negative
Employee Attrition costs can amount to thousands of dollars, annually.
It can also prevent companies from pursuing their growth opportunities and
acquiring new business & Attrition rate is the rate of shrinkage in size or number.
A reduction in the number of employees through retirement, resignation or death is
called Attrition .Attrition is also called total turnover or wastage rate.
The rate of shrinkage in size or number of employees is known as Attrition rate. It is
usually expressed in percentage.
Attrition Rate = ((No. of attritions x 100) / (Actual Employees + New
So according to the formula: ((20 x 100) / (150 + 25)) / 100
Which comes to 0.1142 i.e. 11%
Now as you had 150 previously and now 25 joined so it makes 150 + 25 =175
Now if you calculate 11.42% of 175 i.e. 175 x 0.1142 = 20
Which clearly shows that 175 - 20 = 155, which is your current headcount and at the same time you
can say my attrition is 11.42% that shows you lost 20 employees of 150 and 25 more joined which
makes count to 175.
Lack of importance
Loss of productivity
Replacing qualified employees
Poor retention creates a “revolving door” culture within the organization lowering
morale and confidence.
Cost of overtime or temporary help
Time spent in orientation
A STUDY ON EMPLOYEES ATTRITION IN INDAN IT INDUSTRY
The nature of this report is Descriptive.
The data is collected from secondary sources.
Table1. Employee Attrition Rate of Various Industries in India
INDUSTRY Education Manufacturing Capital Goods Construction IT
% 17 20 23 25 30
Table 2. Employee Attrition Rate in Different Country
Country India Russia Indonesia Brazil US Chin
% 26.9 26.8 25.8 24.4 21.8 21.3 14.6
Table 3.Attrition Rate Top 6 IT company
Cognizant 10.7 14.5
Infosys 15.1 18.1
TCS 11.2 10.9
Wipro 12.9 16.3
Table 4. Impact of Age on Attrition
Age 20-25 26-30 31-35 36-40 40-45
% 13 61 19 7 0
Table 5. Impact of Experience on Attrition
Experience in years 0 - 2 2 - 4 5 & above
% 19 640 17
Table 6. Causes of Attrition.
Causes of Attrition %
Career Advancement 23
Relocation to Another Area 2
Nature of Job 8
Boss Relation Problem 12
Working Hours 5
Location of the
Family Problem 4
IT companies are facing attrition problem.
Employee Attrition rate of IT Company is high in India.
Employee Attrition is high in between age 26-30.
After Some year Experience Employee Resignation the job because higher
opportunity to develop the career.
Majority of employees (42%) left the job due to dissatisfaction with pay,
23% employees left the job due to lack of career advancement,
2% employees left the job due to relocation to another area
8% employees left the job due to nature of job.
Dissatisfaction with pay, Lack of career advancement, Relationship with other
colleagues, Working hours, working conditions, Job related Stress these are
Higher education, Personal problem, Problems with management, Location of
the organization, Maternity these are the personal reasons.
IT companies have a young & dynamic workforce because more than 93% of
the employees have not crossed 35 years.
Offer fair and competitive salaries
Developing a Good Training Program
Reward and Recognition of employees
Strengthen the Recruitment Process
Work Life Balance
Attrition is becoming a serious problem in today’s corporate environment.
Employee attrition has been the silent killer for improving the organizational
Attrition cost for many organizations are very high and can significantly affect the
financial performance of an organization.
From results it can be concluded that there are various reasons behind employee
attrition. These reasons are best offer next door, overseas opportunities, Boss
relation problem, higher package, further overseas studies, shifting of cities due to
marriage, family and personal problem, improper time schedule and parent’s
health requires moving to other cities.
Voluntary attrition rate is high between the ages of 24-28 years
After getting the 2-4 years’ experience IT professionals got higher opportunity so the
growth opportunity is the main reason of the voluntary attrition.
This research proposed a measure if implemented and executed properly would help
concern organization to understand their employees‟ needs with regard to their
career, job, and family and follow the above mentioned remedies and retained their
talented workforce, thereby meeting their expectations and requirements, and thus
reducing employee attrition.
Aswathappa, HUMAN RESOURCES AND PERSONNEL MANAGEMENT, TATA
McGraw Hill, 2003
Research Methodology in Management – V. P. Michael