Indian IT Attrition Rate 2021: About 1 Million Employees Will Resign This Year [REPORT]

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Due to the growing demand for talent required to fulfil large outsourcing deals, Indian IT companies are likely to face sharper attrition rates in 2021.

According to a report prepared by HAN Digital, a talent consulting company, data sourced from over 100 companies between the time period January-March shows that a whopping 1 million employees will potentially resign this year. And that, in turn, would result in increased hiring costs for IT services and Business Process Management aka IT-BPM firms.

According to the report, the tech services industry observed a 12% attrition rate in the previous year, while the COVID-19 was in full swing. However, by the end of 2021, the IT-BPM sector might be looking at an increased attrition rate of close to 22%.


Around 5-8% of full-time employees who were onboarded between January and March left within the first 90 days itself. And now, HR leaders and staffing experts believe that this trend will continue till the end of 2021.

NASSCOM or the National Association of Software and Service Companies said that Indian IT-BPM firms are staring at higher attribution rates due to the sudden growth in demand post the pandemic-induced business slowdown last year.

In 2021 as global companies are looking to upgrade and transform their technological infrastructure, India’s IT sector is observing a massive revival, and this has also led to a growing demand for IT professionals who are equipped to handle such projects.

Thus, at the end of the day, it is the job seekers in the IT sector who stand to gain from the growing attrition rate because they will be able to demand an increase in salaries by an additional 15-25%, according to Saran Balasundaram, Founder and CEO of HAN Digital

Industry analysts in the hiring space believe that the IT-BPM sector will see 1 million resignations as the projected base of employees taken into consideration stands at 4.6 million.


Kamal Karanth, Co-founder and Xpheno, a hiring agency, said that the IT sector job market will become buoyant for talent that previously has been maintaining a low profile in 2020 because of the inflow of large-scale projects besides the organic growth of demand due to increased IT spends.

Lastly, Deepak Agarwal, CEO at Turbohire, said that Indian IT companies are currently ramping up their workforce and are willing to offer bigger paychecks because of the increased inflow of IT transformation projects which, in turn, is causing a higher attrition rate.

But when asked about the same to Tata Consultancy Services (TCS), Tech Mahindra, Wipro and Infosys, they didn’t comment, citing the silent period required before the announcement of quarterly results. While HCL didn’t respond back to the queries at all.

We will keep you updated on all future developments. Until then, stay tuned.


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