In the recent quarter,
10,000 employees left the leading IT vendors Wipro, TCS and Infosys. Similarly, Google's recent results were disappointing because of
expenses related to hiring and retention. Finding and retaining talent is an issue both in India and here.
WSJ reported that salaries in some Indian cities were going up at 30% a year. To meet some of the growth projections and market expectations, these companies are highly dependent on hiring and retention. Product companies such as Google, where revenue per employee are much higher, may not be as exposed as a TCS, Wipro or Infy. These IT vendors are trying to get more from their employees by using knowledge management and code reuse strategies. In addition they are diversifying by moving into more value-added business like
R&D and leveraging their talent by building stronger ecosystems to meet customer needs.