Attrition in IT sector stabilising amid slowdown fears

An impending economic slowdown, employee retention initiatives by IT firms, and layoffs by startups are likely to pull down the overall attrition rate of the Indian IT industry in the coming quarters. And when that happens, it will bring a big respite to the domestic IT industry that has traditionally attracted outsourcing due to availability of technology talent at cheaper cost. Many experts are of the opinion that demand for technology talent will come down in the coming quarters as the economic slowdown impacts IT spending. Various employee engagement initiatives like higher salary hikes, bonuses, and ESOPs are also starting to show results, they added.