MUMBAI: InfosysBSE 2.76 % Ltd, once a bellwether for India’s $100 billion-plus IT outsourcing industry, is losing its cachet as the employer of choice for a generation of young IT workers, with staff leaving at an unprecedented pace as the Bangalore-based company struggles to regain ground lost to rivals.
Current and former Infosys staff interviewed by Reuters say morale has been dented by a series of senior management exits and worries about career prospects as the company’s revenue and pay increases grow at a slower rate than at competitors such as Tata Consultancy Services Ltd
Annual revenue in the year to end-March rose 24.2 percent, lagging growth of 29.9 percent at TCS.
TAKING STEPS
Infosys was founded in 1981 when seven engineers, including N.R. Narayana Murthy, pooled $250 – mostly borrowed from their wives. The company’s rapid growth kick-started the outsourcing movement in India and coined the term ‘to be Bangalore-d’.
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Others, however, are looking to move on, and four headhunting firms in Bangalore, India’s IT hub, said they had seen a surge in resumes from Infosys staff over the past year.
They did not provide numbers for competitive reasons, but Shreya Bajaj, general manager at MapleCode, noted that most Infosys staff seeking jobs through the agency now would consider moving to a smaller company, something that would not have happened 18 months ago.
Future growth for India’s large IT vendors is expected to be driven by infrastructure services and social media, applications (apps) and cloud computing (SMAC) – areas where analysts say Infosys lags rivals such as Cognizant Technology Solutions .