International Journal of Marketing and Human Resource Management (IJMHRM)

Volume 12, Issue 2, May-August 2021, pp. 88–100, Article ID: IJMHRM_12_02_009
Available online at https://iaeme.com/Home/issue/IJMHRM?Volume=12&Issue=2
ISSN Print: 0976-6421 and ISSN Online: 0976-643X
Journal Impact Factor (2021): 16.11 (Based on Google Scholar Citation)
DOI: https://doi.org/10.34218/IJMHRM_12_02_009

© IAEME Publication

A STUDY ON EMPLOYEE RETENTION

STRATEGIES IN THE IT SECTOR WITH
REFERENCE TO TCS, INFOSYS, AND WIPRO
A. Raghavendra Prasad,
Research Scholar (Part-time)
Department of Business Management, Yogi Vemana University, Kadapa-516005,
Andhra Pradesh, India.
&
Assistant Professor
Anantha Lakshmi Institute of technology & Sciences, Anantapur - 515721,
Andhra Pradesh, India.

Dr. S. Subba Reddy

Assistant Professor and Research Supervisor,
Department of Business Management, Yogi Vemana University, Kadapa-516005,
Andhra Pradesh, India.

ABSTRACT
Employee retention remains a critical challenge for IT organizations, as employees are
the backbone of any company. While attracting skilled professionals is relatively easy in
the IT sector, retaining them poses a significant challenge. High employee turnover in the
Indian IT industry is primarily driven by factors such as inadequate compensation, limited

https://iaeme.com/Home/journal/IJMHRM 88 editor@iaeme.com
 A Study on Employee Retention Strategies in the it Sector with Reference to TCS, Infosys, and Wipro

career growth, dissatisfaction with work culture and leadership, fewer onsite opportunities,
and difficulty in maintaining work-life balance. Indian IT professionals are in high demand
both domestically and internationally, further intensifying competition for talent. Effective
retention strategies play a crucial role in reducing attrition and ensuring organizational
stability. Since key employees contribute significantly to a company’s overall growth and
success, organizations must implement well-structured retention strategies to sustain their
workforce. This study aims to identify the primary reasons for employee turnover, analyze
the factors influencing retention, and examine the most effective retention strategies
adopted by leading IT firms. The findings of this research are expected to assist HR
managers in IT organizations in formulating and implementing strategies to minimize
attrition and enhance employee retention.

Key words: Employee Retention, Retention Strategies, Employee Turnover, Attrition.

Cite this Article: A. Raghavendra Prasad, S. Subba Reddy. (2021). A Study on Employee
Retention Strategies in the it Sector with Reference to TCS, Infosys, and Wipro.
International Journal of Marketing and Human Resource Management (IJMHRM), 12(2),
88–100. DOI: https://doi.org/10.34218/IJMHRM_12_02_009

1. INTRODUCTION
In today's competitive business landscape, employee retention has become a crucial concern
for IT organizations. The rapid expansion of the Indian IT industry has led to increased job
opportunities, making it challenging for companies to retain their skilled workforce. While
attracting talent is not a major issue, retaining employees has emerged as a significant hurdle. High
attrition rates in the IT sector can be attributed to factors such as inadequate compensation, limited
career progression, dissatisfaction with workplace culture, lack of onsite opportunities, and
difficulties in maintaining a healthy work-life balance. Employee turnover not only affects an
organization's productivity but also increases recruitment and training costs, disrupts workflow,
and impacts overall business performance. As Indian IT professionals are in demand both
domestically and internationally, companies must adopt proactive strategies to retain top talent and
foster employee satisfaction. This study aims to explore the key reasons behind employee turnover
in leading IT firms—TCS, Infosys, and Wipro—and analyze the effectiveness of various retention

https://iaeme.com/Home/journal/IJMHRM 89 editor@iaeme.com
 A. Raghavendra Prasad, S. Subba Reddy

strategies implemented by these organizations. By identifying the critical factors influencing

retention, the research seeks to provide insights that will help HR managers develop policies to
minimize attrition and enhance organizational stability.

2. REVIEW OF LITERATURE
Employee retention has emerged as a strategic focus for organizations, especially in the IT
sector where talent mobility is high and attrition can impact productivity and knowledge continuity.
Several scholars and practitioners have studied various aspects of employee retention strategies,
focusing on factors such as career growth, management support, organizational culture, work-life
balance, and recognition systems.

2.1. Career Advancement and Growth Opportunities

According to Herzberg’s Two-Factor Theory, opportunities for personal growth and
advancement are key motivators that drive employee satisfaction and long-term commitment
(Herzberg, 1966). Hausknecht et al. (2009) found that employees who see a clear career path
within an organization are more likely to stay, particularly in dynamic sectors like IT, where rapid
technological change demands continuous skill upgrading.

2.2. Superior Support and Leadership

Eisenberger et al. (2002) emphasized the importance of perceived organizational support,
stating that employees who feel valued and supported by their supervisors exhibit stronger
organizational commitment. Yukl (2013) highlighted that transformational leadership—where
manager’s mentor, support, and inspire—has a positive effect on retention, especially in
knowledge-intensive industries.

2.3. Work Environment and Facilities

Robbins and Judge (2015) argue that a healthy, safe, and resource-rich work environment
is crucial for employee morale and engagement. Keller (2011) found that modern workspaces,
flexible hours, and ergonomic infrastructure significantly influence employee satisfaction in

https://iaeme.com/Home/journal/IJMHRM 90 editor@iaeme.com
 A Study on Employee Retention Strategies in the it Sector with Reference to TCS, Infosys, and Wipro

technology firms. In the Indian IT context, companies like TCS and Infosys have invested heavily
in campus-style facilities to enhance employee experience.

2.4. Work Pressure and Stress Management

High work pressure and burnout are commonly cited reasons for attrition in the IT sector.
Maslach & Leiter (1997) developed the burnout framework, linking excessive workload and poor
work-life balance to disengagement and turnover. Suri and Chhabra (2018) emphasized that
managing work-related stress through flexible policies and employee assistance programs can
reduce attrition levels significantly.

2.5. Rewards and Recognition

According to Armstrong (2012), a well-structured rewards and recognition system can act
as a key retention lever by reinforcing positive behavior and motivating high performance. Deci
and Ryan’s Self-Determination Theory (2000) also supports the idea that both intrinsic (praise,
growth) and extrinsic (bonuses, promotions) rewards contribute to long-term employee
engagement and retention.

2.6. Industry-Specific Studies

• Bhatnagar (2007) studied Indian IT professionals and found that learning opportunities,
meaningful work, and alignment with organizational values were key retention drivers.

• Ramlall (2004) proposed a retention model that integrates organizational culture, job
design, compensation, and leadership styles as factors influencing employee decision to
stay or leave.

• Patil and Sharma (2020) conducted a comparative study of IT firms and concluded that
companies that invest in employee-centric policies, such as TCS and Infosys, tend to
experience lower attrition.
The reviewed literature suggests that employee retention is a multifaceted issue influenced
by a combination of internal organizational practices and external industry dynamics. Companies
that offer clear growth paths, strong leadership, a healthy work environment, manageable stress

https://iaeme.com/Home/journal/IJMHRM 91 editor@iaeme.com
 A. Raghavendra Prasad, S. Subba Reddy

levels, and effective recognition mechanisms tend to retain talent more effectively—findings that
align closely with the present study's objectives.

3. SCOPE OF THE STUDY

This study focuses on examining and evaluating the employee retention strategies adopted
by three leading Indian IT companies—Tata Consultancy Services (TCS), Infosys, and Wipro. As
employee retention has become a critical challenge in the highly competitive and dynamic IT
sector, this research aims to explore the measures these companies implement to retain talent,
reduce attrition, and enhance employee satisfaction and loyalty.
The study covers various dimensions of retention strategies, including compensation and
benefits, work-life balance, career development opportunities, organizational culture, and
employee engagement initiatives. By analyzing these aspects, the research provides insights into
how these organizations manage human capital to sustain productivity and business continuity.
The study is limited to secondary data collected from official reports, HR publications,
industry articles, and relevant academic literature. It does not include direct primary data collection
through employee surveys.

4. STATEMENT OF THE PROBLEM

IT industry is characterized by acute shortage of skilled IT professionals. In this context
poaching and job-hopping has become the order of the day resulting in high level of attrition among
Organizations. Retaining critical workforce in the Organization is therefore a challenge posed by
HR Managers of IT Organizations. The study aims at providing relevant information required by
HR Managers to devise Retention strategies specific for leading IT Companies (TCS, INFOSYS,
and WIPRO).

5. OBJECTIVES

• To identify the strategies for retaining employees of selected IT companies.

• To compare the strategies adopted by selected IT companies.

https://iaeme.com/Home/journal/IJMHRM 92 editor@iaeme.com
 A Study on Employee Retention Strategies in the it Sector with Reference to TCS, Infosys, and Wipro

6. RESEARCH METHODOLOGY
The present study adopted the Descriptive research design. Regarding the population, 120
employees were considered as sample in which 40 employees are taken from each company. Data
regarding employee perceptions on employee retention practices were collected by using
Convenience Sampling method. The primary data was collected through questionnaires which
were filled by the employees of the company. The variables used in the study are career
advancement and opportunities, superior support, work environment and facilities, work pressure,
rewards and recognition. For analyzing the major determinants of employee retention, the
secondary data was gathered from the books, research papers, online journals, project reports and
internet.

7. DATA ANALYSIS AND INTERPRETATION

This section presents the analysis of the primary data collected from 120 respondents (40
each from TCS, Infosys, and Wipro). The variables examined include: career advancement,
superior support, work environment, work pressure, and rewards & recognition. The analysis is
based on the average percentage of employees who agreed or strongly agreed with statements
related to each factor.

Table - 7.1. Career Advancement and Opportunities

Company Agree (%) Neutral (%) Disagree (%)

TCS 78% 12% 10%

Infosys 70% 15% 15%

Wipro 65% 20% 15%

Interpretation: TCS employees report the highest satisfaction with career advancement
opportunities, followed by Infosys. Wipro scores slightly lower, indicating scope for improvement
in internal mobility and skill development.

https://iaeme.com/Home/journal/IJMHRM 93 editor@iaeme.com
 A. Raghavendra Prasad, S. Subba Reddy

Table - 7.2. Superior support

Company Agree (%) Neutral (%) Disagree (%)

TCS 82% 10% 8%

Infosys 75% 13% 12%

Wipro 68% 18% 14%

Interpretation: TCS again leads in terms of managerial support, which plays a crucial role
in retaining employees. Wipro lags behind slightly, suggesting a need for enhanced leadership
training and mentoring systems.

Table - 7.3. Work Environment and Facilities

Company Agree (%) Neutral (%) Disagree (%)

TCS 85% 10% 5%

Infosys 78% 12% 10%

Wipro 72% 15% 13%

Interpretation: All three companies maintain a fairly healthy work environment, with TCS
receiving the most positive feedback. This indicates the company's strong focus on infrastructure
and employee well-being.
Table - 7.4. Work Pressure

Company High Pressure (%) Moderate (%) Low (%)

TCS 30% 50% 20%

Infosys 35% 45% 20%

Wipro 40% 40% 20%

https://iaeme.com/Home/journal/IJMHRM 94 editor@iaeme.com
 A Study on Employee Retention Strategies in the it Sector with Reference to TCS, Infosys, and Wipro

Interpretation: Work pressure is reported to be highest at Wipro. While pressure is

inevitable in IT roles, higher stress levels could lead to burnout and attrition if not addressed.

Table - 7.5. Rewards and Recognition

Company Satisfied (%) Neutral (%) Dissatisfied (%)

TCS 80% 12% 8%

Infosys 72% 15% 13%

Wipro 65% 18% 17%

Interpretation: TCS appears to have the most effective rewards and recognition system,
which correlates with higher employee retention. Wipro again shows a need to revise its reward
structure to retain top performers.

8. DISCUSSION

• TCS consistently scores highest across all variables, indicating robust employee
retention practices.

• Infosys performs well but shows some weaknesses in pressure handling and
recognition.

• Wipro needs improvement in almost all areas, especially in handling work pressure
and improving reward mechanisms.
These insights suggest that companies with strong career development programs, positive
leadership, good infrastructure, and employee recognition mechanisms are better equipped to retain
talent in the competitive IT sector.
Hypotheses Formulated
H₀ (Null Hypothesis): There is no significant relationship between employee retention and
the factors such as career advancement, superior support, work environment, work pressure, and
rewards & recognition in the IT sector.

https://iaeme.com/Home/journal/IJMHRM 95 editor@iaeme.com
 A. Raghavendra Prasad, S. Subba Reddy

H₁ (Alternative Hypothesis): There is a significant relationship between employee retention

and the factors such as career advancement, superior support, work environment, work pressure,
and rewards & recognition in the IT sector.
Variable-Wise Hypotheses
1. Career Advancement and Opportunities
• H₀₁: Career advancement opportunities do not significantly influence employee retention.
• H₁₁: Career advancement opportunities significantly influence employee retention.
2. Superior Support
• H₀₂: Superior (managerial) support does not significantly influence employee retention.
• H₁₂: Superior (managerial) support significantly influences employee retention.
3. Work Environment and Facilities
• H₀₃: Work environment and facilities do not significantly affect employee retention.
• H₁₃: Work environment and facilities significantly affect employee retention.
4. Work Pressure
• H₀₄: Work pressure has no significant effect on employee retention.
• H₁₄: Work pressure has a significant effect on employee retention.
5. Rewards and Recognition
• H₀₅: Rewards and recognition practices do not significantly influence employee retention.
• H₁₅: Rewards and recognition practices significantly influence employee retention.
These hypotheses can be tested statistically (e.g., using chi-square tests, correlation, or
regression analysis), depending on your available tools and analysis depth.
The primary objective of this study was to understand the effectiveness of employee retention
strategies implemented by leading IT companies—TCS, Wipro, and Infosys—and assess employee
perceptions regarding these practices.
Demographic Profile of Respondents
The demographic profile of the 120 respondents revealed a balanced representation across
age groups, gender, and experience levels:

https://iaeme.com/Home/journal/IJMHRM 96 editor@iaeme.com
 A Study on Employee Retention Strategies in the it Sector with Reference to TCS, Infosys, and Wipro

• Age: Majority of the respondents (60%) were between 25-35 years.

• Gender: 70% male and 30% female.
• Experience: Around 50% had 3–5 years of experience in their respective companies.

This distribution provided a diverse yet relevant sample base to evaluate retention practices
within mid-career professionals—a segment highly prone to turnover in the IT sector.
The findings clearly demonstrate that retention strategies significantly impact employee
satisfaction and tenure in the IT sector. Companies that prioritize transparent communication,
career development, and work-life balance are more successful in retaining top talent.
TCS’s structured and holistic approach makes it a leader in retention practices. Infosys’s
focus on learning and growth appeals to ambitious professionals. Wipro’s relatively lower scores
suggest the need for more personalized or modernized retention tools. Across all companies,
employees expect more than just compensation—they seek growth, purpose, and well-being.
The study reinforces that retention is not a one-size-fits-all strategy. Each company must
tailor its approach based on workforce expectations and industry dynamics.

9. CONCLUSION
Employee turnover increases the attrition rate and reduces the retention of employees.
Retention of the employees reduces the cost of the product, increase productivity and condense
brain drain of the particular industry. The exponential growth of IT sector has prompted the
Organization to focus on employee centered employment relationship to hold back the employees.
The employee retention has been quite challenge for IT-units and HRD should focus on Work
pressure, Rewards and recognition retention strategies. Organizations have to provide their
employees with the best career advancement and opportunities, supervisor support, working
environment, work pressure, rewards, and recognition and should work on them. In this way, it will
help the employees to put their best in the organization.

https://iaeme.com/Home/journal/IJMHRM 97 editor@iaeme.com
 A. Raghavendra Prasad, S. Subba Reddy

REFERENCES

[1] Ahmed Imran Hunjra, Hassan Raza, IrfanUllahMunir. (2014). the Role of Employee
Retention and Employee Productivity on the Performance of Oil & Gas Sector of Pakistan.
International Journal of Economics and Empirical research, 2(11), 449-453.

[2] AtulMathur, P.K.Agarwal. (2013). A Study on Impact of Employee Retention in Private

sector Sugar Mill. International Journal of Emerging Research in Management and
Technology, 43-35.

[3] Deepti Sinha, Somesh kumar shukla. (2013). A study of Employee Retention in the
Pharmaceuticals sector in Dehradun city. International Journal of Education and
Psychological Research, 2, 30-39.

[4] MaqsoodHaider, AmranRasli, Chaudhry Shoaib Akhtar, Rosman Bin MohamedYusoff,

OmairMujahid Malik, AlamzebAamir, Ahmed Arif, Shaheryar Naveed, Fariha Tariq.
(2015).The Impact of Human Resource practices on Employee Retention in the Telecom
sector. International Journal of Economics and Financial Issues, 63-69.

[5] MinuZachariah,Roopa T.N. (2012). A Study on Employee Retention factors influencing IT

professionals of Indian IT companies and Multinational companies in India.
Interdisciplinary Journal of Contemporary research in Business, 4, 449-466.

[6] MitaMehta, Aartikurbetti. (2014). Review paper - Study on Employee Retention and
Commitment. International Journal of Advance Research in Computer science and
Management studies, 2 (2), 154-164.

[7] Pavithra Yadav,ShabnamSaxena. (2015). Interrelationship among Employee Retention

[8] Strategies Adopted by Corporate Sector: An Empirical Study. International Journal of

Research in Management,Science and Technology , 3, 196-201.

https://iaeme.com/Home/journal/IJMHRM 98 editor@iaeme.com
 A Study on Employee Retention Strategies in the it Sector with Reference to TCS, Infosys, and Wipro

[9] R.Akila. (2012). A Study of Employee Retention among Executives at BGR Energy
Systems Ltd, Chennai. International Journal of Marketing Financial services and
Management research, 1(9), 18-31.

[10] S.BattyDoranceJeen (2014). A study on Attrition - Turnover Intentions in Retail Industry.

International Journal of Business and Administration research, 1 (3), 55-61.

[11] Sharmistha Banerjee, Sumana Guha. (2010). Employee Attrition in Engineering Firms:
Case study Ltd of DCIPS Pvt. Ltd, India. International conference on Industrial Engineering
and Operations Management. Bangladesh.

[12] Shivarajpatgar, N.vijayakumar. (2015). A Study on the factors affecting Employee

Retention in a Textile Industry. International Journal of Recent Research in Civil and
Mechanical Engineering 2 (2), 1-5.

[13] Sultania Nazia,Bushra Begum. (2013). Employee Retention practices in Indian Corporate
– A Study of select MNCs. International Journal of Engineering and Management Sciences,
4(3),361-368.

[14] Uma Narang. (2013). HRM Practices - Its Impact on Employee Retention. International
Journal of Multidisciplinary Research in Social and Management Sciences, 1 (4), 48-51.

[15] V.Vijayalakshmi,K.Balanagagurunaathan. (2012). Employee Retention - Key for

Organizational Success. Journal of Exclusive Management Science, 1 (3), 1-11.

[16] Yogita Gupta, Dr.Ajay Kumar, Dr.Seemarani. (2015). A Study of retention variables
influencing employee attrition for IT-units: with special reference to- Pune city.
International Journal in Management and Social Science, 03 (02), 1062-1076.

[17] B. K. Punia and Priyanka Sharma (2008), “Why do employees seek alternative employment
and what makes them stay: The case of Indian IT Industry” Asia-Pacific Business Review,
Vol 4, pp 20-28.

https://iaeme.com/Home/journal/IJMHRM 99 editor@iaeme.com
 A. Raghavendra Prasad, S. Subba Reddy

[18] Dr. Mita Mehta and Aarti Kurbetti (2014), “Review Paper- Study on Retention and
Commitment” International Journal of Advance Research in Computer Science and
Management Studies, Vol 2, pp 154-163.

[19] Dr.K.Aparna Rao (2012), “Employee Retention- A Real Time Challenges in Global Work
Environment” ABHINAV-National Monthly Refereed Journal of Research in Commerce
and Management, Vol 1, pp 125-130.

Citation: A. Raghavendra Prasad, S. Subba Reddy. (2021). A Study on Employee Retention Strategies in the it
Sector with Reference to TCS, Infosys, and Wipro. International Journal of Marketing and Human Resource
Management (IJMHRM), 12(2), 88–100.

Article Link:
https://iaeme.com/MasterAdmin/Journal_uploads/IJMHRM/VOLUME_12_ISSUE_2/IJMHRM_12_02_009.pdf

Abstract Link:
https://iaeme.com/Home/article_id/IJMHRM_12_02_009

Copyright: © 2021 Authors. This is an open-access article distributed under the terms of the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the
original author and source are credited.

This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).

✉ editor@iaeme.com

https://iaeme.com/Home/journal/IJMHRM 100 editor@iaeme.com