Vinit Teredesai, CFO, Mindtree, on Friday, said that he is seeing early signs of stabilisation in attrition. Elaborating further, he said that the attrition cycle is extending beyond the IT sector. However, as the geographical boundaries open up, he remains hopeful of attrition coming down.
In an interview to CNBC-TV18, Teredesai said, “We are also seeing that the attrition cycle is even extending beyond the IT sector. We believe that as the international boundaries open up, people are able to move from offshore to onsite, there can be a lot of career opportunities that can be opened up and that can be one of the reasons that can help us in keeping attrition down,” he said.
Detailing the recruitment picture, he mentioned that cost of talents is on the higher side for the company. He explained that currently around 1,000-1,500 freshers are being hired per quarter, however, he expects the figure to rise further. Teredesai is of the view that fresher addition will help the company in bringing down its costs. He also added that the company is investing in improving the experience of employees and also providing them with a more flexible working environment. According to him, increasing the option of working from anywhere will aid margin for the company.
“Two years back, our overall fresher addition to our population was around 1,000-1,500 per year. Now we are moving that from 1,000-1,500 per quarter and we want to take it even further in FY23. So you can make the math in terms of what sort of benefits will come in. Also, the increments or any wage inflation cycles that we are doing, are no longer restricted necessarily to the old annual cycles. We are doing interventions into salary corrections as and when the need comes in,” said Teredesai.
On the business and deal side, he pointed out that the cost base on new deals has gone up and hence, the company is not entering into any margin-dilutive deals. He also explained that the company has not seen much of an impact in terms of revenue from international operations.
"We are looking at ensuring that our cost base on which the new deals are getting signed is also on the higher side,” he said.
For the entire interview, watch the accompanying video