Attrition rates have been high across IT companies through the last few quarters as demand for technology talent with digital skills continued to outstrip supply with increasing labor costs.
With rising demand, attracting talent, training, and retention gained paramount importance. Investor focus has shifted to a potential demand slowdown, while IT companies are dealing with a separate challenge i.e.
talent shortage to meet demand. Companies are incurring high talent retention costs (retention bonus, out-of-cycle wage revision etc.).
The challenge exists, in India as well as onsite. e. This pressure will seep into margins. Hiring is considered to be a good proxy on demand and will receive attention.