Thursday, March 30, 2023

Accenture Sees High Attrition Rate, Despite Financial Growth

Accenture Sees High Attrition Rate, Despite Financial Growth

IT and consulting services giant, Accenture, has registered a 17 percent attrition rate in the third quarter of the financial year 2021. Although “The Fortune Global 500” company has registered a strong turnover in the quarter, the attrition rate has grown significantly, reaching almost pre-pandemic levels.

Attrition for the company was on the higher side in the past, before the pandemic. However, it dipped to 11 percent in the same quarter of 2020. Julie Sweet, chief executive officer, Accenture, admitted that the attrition had reached pre-COVID levels but also said that it wasn’t the “highest for the company.” She acknowledges that it is not an unknown thing in the industry and that Accenture is not very worried.

This rise in attrition can be attributed to the surge in demand for digitization, and therefore, tech talent, and companies increasingly rushing to modernize their processes and give a boost to their digital initiatives.

For Accenture, the attrition rate has jumped by five percent between the last two quarters. But then Accenture isn’t the only company suffering high attrition. Infosys reported a hike in attrition rate by 5.2 percent between March to May, which was 5.2 percent more than the 10 percent reported in the Jan-March quarter.