Managing Attrition in the Indian Information Technology Industry

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : HROB071 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


Case Length : 14 Pages
Period : 1991-2005
Pub Date : 2005
Teaching Note : Available
Organization : -
Industry : Information Technology
Countries : India


The case analyzes the management of human resource in the IT industry with a special emphasis on the factors responsible for the high rate of employee turnover in the industry. The IT industry, being a knowledge-based sector, requires a workforce that is highly competent. Also, the demanding nature of work in the industry requires effective strategies to retain its workforce. With growing demand for Indian IT professionals overseas and with multinational IT companies establishing their offices in India, retention becomes very difficult. To handle the challenge, companies have started using a variety of retention tools such as ESOPs and RSUs.

They have also taken other initiatives like improving the work-life balance of their employees, encouraging learning and development, developing a positive organization culture, etc. to retain their employees. The case examines the retention tools used by Indian IT companies to combat attrition. It ends with the discussion on the challenges the Indian IT industry faces in the future in view of the growing need to retain its talent pool.


Trends in attrition in the IT industry in India

Drivers of attrition in the IT industry

Various retention strategies formulated for retaining employees

Importance of recruitment, compensation & rewards, work-life balance, learning and development, organization culture and leadership in reducing attrition


  Page No.
Introduction 1
Trends in Attrition 2
Combating Attrition 3
Emerging Challenges 9
Exhibits 10

Key Words:

Information Technology, Attrition, Infosys Technologies Limited, Wipro Technologies Ltd, Tata Consultancy Services (TCS), Satyam Computer Services Limited, Employee Retention, ESOPs, NYSE, MindTree Consulting, NASSCOM, Recruitment, Hewitt Associates, Compensation, Employee Stock Purchase Plan (ESPP), Restricted Stock Units (RSUs), Organization Culture, Work-life Balance, Flexi-timing, Leadership,Wipro Leaders' Program

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