Cognizant Attrition

Cognizant in reaction to media reports on high annual attrition rate said the company was following its plan for promoting rapid growth, upholding dominant positions in important economic spheres, and increasing its global headcount to the largest ever.

Cognizant had in May offered up to nine months of salary as part of the package to some top-level executives in the US and India.

Cognizant's annualised attrition rate stood at 23.6 per cent, including BPO and trainees, during the June quarter.

Cognizant did not disclose the number of employees who have been offered this voluntary separation option.

Infosys chief financial officer Rajiv Bansal told Nomura analysts Ashwin Mehta and Pinku Pappan that the company has taken measures like wage hikes, regular promotions, and reducing uncertainty on take-home salaries on the monetary front. Infosys is also pursuing softer aspects like improving engagement with employees, he added.

The promotions are aimed at controlling a record attrition at Infosys, analysts say. India's second largest outsourcer had reported an annualized attrition rate of 19.5 per cent for the quarter ended June 30. In simple terms, one in five employees left Infosys in the one-year period.

At a post-earnings analyst call on Wednesday, Gordon J. Coburn, president of Cognizant said the company gave salary increments at the higher end of the industry to send a strong message to employees that they can have terrific careers and great growth paths.

The country's second-largest software services company, which has trailed peers TCS and Cognizant on growth, is also looking at weeding out non-performers to improve efficiency.

Cognizant in reaction to media reports on high annual attrition rate said the company was following its plan for promoting rapid growth, upholding dominant positions in important economic spheres, and increasing its global headcount to the largest ever.

Cognizant had in May offered up to nine months of salary as part of the package to some top-level executives in the US and India.

Cognizant's annualised attrition rate stood at 23.6 per cent, including BPO and trainees, during the June quarter.

Cognizant did not disclose the number of employees who have been offered this voluntary separation option.

Infosys chief financial officer Rajiv Bansal told Nomura analysts Ashwin Mehta and Pinku Pappan that the company has taken measures like wage hikes, regular promotions, and reducing uncertainty on take-home salaries on the monetary front. Infosys is also pursuing softer aspects like improving engagement with employees, he added.

The promotions are aimed at controlling a record attrition at Infosys, analysts say. India's second largest outsourcer had reported an annualized attrition rate of 19.5 per cent for the quarter ended June 30. In simple terms, one in five employees left Infosys in the one-year period.

At a post-earnings analyst call on Wednesday, Gordon J. Coburn, president of Cognizant said the company gave salary increments at the higher end of the industry to send a strong message to employees that they can have terrific careers and great growth paths.

The country's second-largest software services company, which has trailed peers TCS and Cognizant on growth, is also looking at weeding out non-performers to improve efficiency.