High attrition & Variable Pay: A spoilsport for IT firms

A decision to hold back variable pay by top IT companies such as Wipro NSE -2.88 % could imply softening revenue growth for the $200 billion software services export industry.

Burde thinks the talent woes for the industry are not yet over. So, Wipro's variable pay cut move carries an additional risk of attrition increase.

Mishra believes companies are now only engaging in 'keep the lights on' projects which are for business continuity involving infrastructure and maintenance-related projects.

Of all the four major IT players in the country, Infosys has been hit the hardest by high levels of attrition followed by HCL Tech.

With the mass adoption of work-from-culture and steep rise in upskilling among IT professionals during the Covid-19 pandemic, more people are taking the exit route.