The main causes are poor working conditions and the churn caused by the sudden growth of the industry leading to companies poaching each other's staff, said the report.
The report also blamed poor management practices, overwork, lack of training and badly planned reward systems as factors leading to the high attrition rate among staff.
Managing the high level of attrition is increasingly important not only to reduce huge costs involved in training new workers, but also to sustain the large pool of highly-skilled workers, said the report.
Mr. Suren Singh Rasaily, senior vice president of IT firm NIIT was quoted in a Nasscom report on human resource practices as saying that "we are encouraging companies to adopt responsible behavior in order...Industry needs to go aggressive but not cannibalistic."
According to a Nasscom industry survey, the IT services industry employed 650,000 professionals in March 2003, showing a growth of 24.4 percent from 2002's 522,250. Of the total, almost 205,000 are working in the software export industry; 160,000 are in IT-enabled services; 25,000 in the domestic software market and over 260,000 in user organisations.
Over the next five years, this number is expected to triple to over 2 million persons.
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