IT sector attrition normal, will take place every few years: Mohandas Pai

He added that most people will find another job, and maybe only 10-15% of people may not due to the lack of necessary skills.
IT sector attrition normal, will take place every few years: Mohandas Pai
IT sector attrition normal, will take place every few years: Mohandas Pai
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Mohandas Pai, the Chairman of Aarin Capital and former Infosys Director said that the attrition of people in the IT sector is normal, and happens once every five years or so. Pai said that people get promoted, and eventually, appraisal conditions tighten up. 

He added that large companies have an attrition rate of 15%, and people leave their jobs because there are other jobs available. If there are no jobs, they wouldn’t leave.

“The companies also find that in the entire pyramid structure, there are people who are aggregating at some level who are not adding value. So they tighten up operations and the bottom 5% are asked to go,” he said. 

He added that most people will find another job, and maybe only 10-15% of people may not due to the lack of necessary skills.

“In the startup community today, they need project managers to write software for them. They're short of talent. There are jobs available. It's not like a layoff where you ask people to go because there's no business or the biz is shut down,” Pai said. 

The economic slowdown affected multiple industries, and the IT sector, too, was one of them. Cognizant had announced that it was going to lay off 7,000 employees, Capgemini 500, and Infosys’s involuntary attrition was reportedly close to 10,000. 

Involuntary attrition is a term used by companies for letting go of people who do not measure up to expectations or standards of performance — and has been noticed at the company over a few quarters.

In an environment like this, people often upskill in order to stay relevant in the company. According to Pai, companies give many opportunities for employees to upskill themselves and learn, and that people leave jobs for a variety of reasons. 

“Very large companies, with over 30,000 people, need to do this at periodic intervals to streamline their pyramid. They tighten up the conditions, people leave, they get jobs. Very few don't get jobs because they are just not good enough for the salary they get. In some organisations, people are promoted and given much more because the company is growing, than what they would normally get. What they get will be much beyond what they're due. Corrections happen, it's a part of a system,” Pai said. 

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