When the going gets tough at information technology (IT) services firms, it is perhaps the toughest for employees.
Technology companies let go of more employees than they otherwise would, to cut costs and protect profit margins.
This year will be no different, although things are more complicated because of the ongoing shift in demand from traditional services to digital solutions, making some of the staff redundant.
Still, involuntary attrition is expected to remain in low single-digits at top-tier companies. While companies don’t break-down attrition numbers, analysts estimate that top IT services companies typically let go of 1-2% of their staff either due to a shortfall in performance or a mismatch in skills. This is expected to rise by another percentage point or so in the coming year, according to an analyst at a multinational brokerage.
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