BENGALURU: Infosys’ board of directors is directly monitoring measures to reduce employee attrition, two people aware of the deliberations said.
The Bengaluru-based software services provider reported 23.4% attrition rate in the quarter ending June 30. This includes people who were let go during the quarter.
In the preceding three months, the attrition rate was 20.4%, while it stood at 23% in the year-ago period. The board typically discusses attrition rates at its meetings. The consistently high level is, however, making the board take stronger notice, the people said.
“The board is trying to understand why this is happening and address it. They do not see it as alarming yet,” one person told ET. “They would like the attrition rate to come down.”
Infosys has said that while the number of employees leaving the company was a concern, it was not affecting its services to clients. “The attrition (now) is high and the steps to decrease it have not yet shown an impact. The board wants to monitor the steps because it is a significant risk,” an Infosys executive with knowledge of the matter said. “If employees are constantly being changed on projects, the clients begin to get annoyed.”
