SENIOR executives of software firms predict a fall in the attrition rate and a return to sanity in compensation package. This is the direct result of the economic down turn in the US.

Not wanting to go on record, executives of software firms said that the attrition rate in the industry in the past few years has been around 35 per cent - much more than the often cited 18 to 25 per cent mark.

Small and medium-sized enterprises (SMEs), that have borne the burnt of rapid manpower turnover and ballooning wage bills are hopeful that job hops and undue salary expectations will be a thing of past.

"IT Professinals view SMEs as a place to work for the least possible period. This attitude will change. So will loyalty to organisation which today is totally irrelevant," said Mr.K.Srinivasan, managing director, KALS Information Systems.

Since job opportunities in the days to come are expected to shrink considerably, knowledge workers will think several times over before walking away for a better deal, be it salary, perks, projects, opportunities in the US, or technology, said employers.

Attrition rate will drop as demand is likely to be much less than supply. Domestic supply of talent will also increase with software professionals from the US coming back, said Mr.Dileen K Ranjekar, executive vice-president, human resources, Wipro.

Mr.Ranjekar and Mr.Pratik Kumar, vice-president, talent, engagement and development, Wipro Technologies, indicated that they, however, did not anticipate the return of a large number of Indian IT Professionals.

Wipro as of now has neither experienced any drastic increase in resumes nor sizeable drop in employee exit, they said adding that the company has always been an attractive destination for prospective employees and its attrition rate much less than industry average.

The attrition rate is likely to come down and so will high salary expectations but these are cyclic trends, said Mr.V.Chandrasekaran, Managing Director, Mascot Systems.

"Salary is dependent on supply and if that improves, due to increase in the number of expats coming back, then it will be corrected."

Few CEOs of software firms agree that companies went overboard in hiring, mainly in anticipation of projects. This they said was what led to sky rocketing salaries and the emergence of innovative perks like dating allowance.

Due to the high domestic and overseas demand, the concept of organisational loyalty and the need to grow up an organisation was never felt by employees, they added.

Said Mr.Srinivasan of KALS:"Until now there has been no relationship between salary expected and productivity, as jobs become more scarce, this will change. Employees will begin to realise that loyalty to organisation is important and they need to learn not just technology platforms but management and situational skills."
Expressing the views of several other executives, Mr.Srinivasan said that the software industry in the country would benefit as salary costs would come to more realistic levels, software professionals would start valuing their employment and strive to contribute more, and would begin to understand that IT was a business and technology was only a means.