Analysis of Attrition in It Industry

Topics: Employment, Human resource management, Customer attrition Pages: 25 (5548 words) Published: October 29, 2012
Sr No.| Topic| Page No.|
1| Objective| 2|
2| Introduction| 2|
3| Introduction to Information Technology Industry| 3|
4| Executive Summary| 3|
5| Trends in Attrition| 5|
6| Major Reasons for Attrition| 8|
7| Attrition analysis in top IT Sectors| 14|
8| Possible Solutions for Attrition| 14|
9| Primary Research Analysis| 16|
10| Questionnaire| 19|
11| Data Analysis| 21|
12| Conclusion| 28|
13| References| 29|
Index - Analysis of Attrition in IT Industry

* To determine the trend of attrition in Indian IT industry. * To identify the various causes and reasons for high level of attrition in IT industry. * To understand the various corrective measures taken up by Industry to curb the high level of attrition. Introduction

Definition of Attrition
Normal and uncontrollable reductions in work force because of retirement, death, sickness, and relocation. It is one method of reducing the size of a work force without management taking any overt actions. The drawback to reduction by attrition is that reductions are often unpredictable and can leave gaps in an organization. Definition and Calculation of Attrition Rates

A factor, normally expressed as a percentage, reflecting the degree of losses of personnel or materiel due to various causes within a specified period of time The formula and correct logic behind calculation of Attrition Rate [(no. Of attritions x 100) / (Actual Employees + New Joined)] /100. Example

1. Actual Employees -150
2. Number of people left-20
3. Number of employees Joined -25
Total Employees-155

So according to the formula: ((20 x 100) / (150 + 25)) / 100 which comes to 0.1142 i.e. 11%

Introduction to Information Technology Industry
India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. The first software export zone SEEPZ was set up way back in 1973, the old avatar of the modern day IT Park. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 80s. The Indian Information Technology industry accounts for a 5.9% of the country's GDP and export earnings as of 2009, while providing employment to a significant number of its tertiary sector workforce. More than 2.3 million people are employed in the sector either directly or indirectly, making it one of the biggest job creators in India and a mainstay of the national economy. In March 2009, annual revenues from outsourcing operations in India amounted to US$60 billion and this is expected to increase to US$225 billion by 2020. The most prominent IT hub is IT capital Bangalore. The other emerging destinations are Chennai, Hyderabad, Mumbai, Pune, NCR, Jaipur and Kolkata. Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India's education system produced more engineers than its industry could absorb. India's growing stature in the information age enabled it to form close ties with both the United States of America and the European Union. Each year India produces roughly 500,000 engineers in the country, out of them only 25% to 30% possessed both technical competency and English language skills, although 12% of India's population can speak in English.| The National Informatics Centre was established in March 1975. The inception of The Computer Maintenance Company (CMC) followed in October 1976. Between 1977 and 1980 the country's Information Technology companies Tata InfoTech, Patni Computer Systems and Wipro had become visible. The 'microchip revolution' of the 1980s had convinced both Indira Gandhi and her successor Rajiv Gandhi that electronics and telecommunications were vital to India's growth and development. MTNL underwent technological improvements. Between 1986-1987, the Indian government embarked upon the creation of three wide-area computer networking schemes: INDONET (intended to serve the...
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