Attrition has declined but not at expected pace, says Mastek's Ashank Desai

In the third quarter of FY23, the attrition rate in India across industries witnessed a 0.46 percent increase, from an average of 7.81 percent in Q2 to 8.27 percent in Q3, according to the "Employment Outlook Report Q4” for both manufacturing and services sectors by TeamLease.

The report highlighted that the Information Technology industry in the services sector had higher average attrition of over 27.19 percent as compared to Healthcare and Pharmaceuticals industry in the manufacturing sector with an attrition rate of over 15.67 percent.

Mastek is a global IT solutions company that specializes in providing digital transformation services to businesses across various industries. One of the challenges that the company has faced recently is employee attrition. Although attrition has declined, it has not done so at the expected pace.

In an interview with CNBC-TV18, Ashank Desai, VC and MD of Mastek said that attrition has declined, but not at the expected pace. However, he is optimistic that attrition levels will soon approach normalcy in the next fiscal year.

He said, “It is going down but not as fast as we would like to have. However, the speed of attrition has to still go down faster. We are looking at next year that the attrition will come back to the normality.”

Mastek is focusing on growing the business organically, with a particular emphasis on digital marketing as a major segment of the business. Digital marketing has become increasingly important to the company, as it accounts for 22 percent of its sales. By focusing on this area, Mastek hopes to continue to grow its business and attract new customers.

“We have been focusing on digital marketing as a major segment of our business. It accounts for 22 percent of our business and on that 15 percent is a retail business that we have,” said Desai.

However, the current economic uncertainty has made it more challenging to make decisions, as customers are worried about the possibility of a recession. As a result, decisions are getting delayed, which is affecting the company’s ability to move forward with its growth plans.

The company also announced a strategic partnership with Netail. Netail is a new-age and AI-led retail software solutions partner, and this partnership will help e-commerce and omnichannel retailers with the transformation.

For more details, watch the accompanying video