Cognizant plans employee sops to arrest highest attrition rate among peers
Cognizant clocked an attrition rate of 33% in the quarter ended September 30, far exceeding those recorded by TCS (11.9%), HCL Technologies (15.7%), and Infosys, Wipro and Tech Mahindra (20%)
Source | economictimes.indiatimes.com | Dia Rekhi
Chennai: Cognizant Technolgy Solutions Corp. has clocked the highest attrition rate among software services peers, prompting CEO Brian Humphries to announce sops to retain employees amid a war for talent in the industry.
The Nasdaq-listed and India-focused IT services firm clocked an attrition rate of 33% in the quarter ended Sept. 30, far exceeding those recorded by Tata Consultation Services (11.9%), HCL Technologies (15.7%), and Infosys, Wipro and Tech Mahindra (20%).
Humphries told analysts that Cognizant is creating 2020 bonuses at higher levels than 2019 and will also implement targeted merit increases and promotions in the fourth quarter.
He said that while this move will hurt the cost structure in 2020 versus the prior year, it is an essential and normalised part of the cost structure in the services business. This comes in the larger backdrop of the company reporting voluntary annualised attrition at 33% This number has come down from 37% which was the number in the previous quarter.
