Infosys declares Q2 results: Attrition rate continues to rise

BANGALORE: The return of founder-chairman NR Narayanamurthy seems to have done little for Infosys’ people problems, as attrition rates continued to rise. The Bangalore-based information technology company’s attrition rate stood at 17.3%—the highest in at least two years.

With uncertainty at the top management and lackluster results, Infosys has been struggling to retain talent over the past year. Even a year ago, attrition rates were lower by over 200 basis points at 15%.

But hiring figures have improved, with 2,964 net additions, compared with a meager 575 last sequential quarter; it was 2,610 in the comparable year-ago quarter.

Of the 12,168 gross hires, 3,806 were recruited laterally. However, the number of billable employees has gone down to 1,28,871, from 1,34,266 in the second quarter. Utilization levels rose marginally to 73.7% from 72.4% earlier.