Joining its peers, IT bellwether Wipro reduced its attrition rate to 18.5 per cent of the work force in the second quarter of this financial year. In the first quarter, the attrition rate was 23.2 per cent.

Attrition rate refers to the exodus of a company’s work force. The IT services segment increased its headcount to 131, 730 from 126, 490 during the quarter ending September 30, 2011. While Wipro’s peer, Infosys, Mindtree, and TCS were steadfast in bringing down their attrition rate; Wipro’s attrition rate had actually increased in the first quarter.

The attrition rate at Infosys dropped to 15.6 per cent from 17 per cent over the past two quarters. At TCS, it fell to 13.7 per cent in the quarter ending September, from 14.8 per cent in the last quarter ended June. MindTree’s attrition rate also fell to 21.7 per cent in the September quarter from 25.6 per cent in the June quarter.

Wipro’s executive VP, HR, Pratik Kumar said, “This has happened due to changes at multiple levels. Salary increase and promotions are two things. But new leadership, new strategy, renewed confidence is what has made these things possible. Most importantly, we have a deep understanding with employees, and taking them into confidence, are the other steps which helped us in this process”.

Wipro’s attrition for the last 12 months ending September 2011 was 21. 1 per cent or down from the last quarter’s 22.6 per cent. “We think what is comfortable to us is 12 to 14 per cent. And we are hopeful to go below 15 per cent. Attrition is mostly in lower levels of the company. Given that bulk of hiring takes place in lower level, so attrition will normally be higher in lower level. People who are in bench are more susceptible to job change”, said Pratik Kumar. Most of the exodus was from benched employees. “Bench staff normally look out for more opportunities and take up jobs,” he said. He however declined to reveal any numbers.

But Wipro, faced with demands of protectionism in the Western countries stepped up efforts to defend its business. Wipro’s increased its intake of local nationals in western regions. The company increased its local nationals presence in its work force to 38 per cent.

Giving reasons for the increase in the number of local nationals, Kumar said, “We can’t shy away Protectionism”. Other reasons for increase in local nationals, according to him are, long term involvement in foreign lands and deeper understanding with foreign conditions. The increase in intake of local nationals into the work force would have little impact on the costs and bottom lines. Pratik Kumar said, “These people bring in experience and value into the business.”

sameerrbakshi@mydigitalfc.com