IT attrition may spike again as firms delay performance-linked payouts

A decision to hold back variable pay by top IT companies such as Wipro NSE -1.63 % could imply softening revenue growth for the $200 billion software services export industry. It could also mean attrition — which has already touched unprecedented levels — could further spike up due to the cut in the performance-linked incentive, analysts told ET.

This comes as Wipro last week communicated to employees that mid- to senior-level staff will not receive their variable pay for June-ended quarter while junior associates will get only 70% of the targeted pay. TCS NSE -0.32 % too had delayed a performance bonus by a month for a certain band of employees due to “administrative” reasons.