Almost 20% of this workforce left startups to voluntarily join the IT-BPM ecosystem over the past year.India’s overall IT-BPM headcount currently stands at about 5.1 million, of which around 420,000 are employed with startups.

Over the last few months, Indian tech startups, including a few unicorns such as Cars24, Vedantu, Mfine and Meesho – to name a few – have fired nearly 6,000 people as they scramble to cut cash burn and extend their runway, according to market estimates.

The Indian IT sector has reported record attrition in the previous quarter, with TCS’ rate at 17.4%, Infosys at 27.7%, HCL Technologies NSE -1.37 % at 21.9%, Wipro at 23.8% and Tech Mahindra NSE -1.38 % at 24%.

According to data shared by talent consulting company Han Digital, around 40-50% of employees leaving startups are getting absorbed by IT companies, consulting and product companies and global captive centres (GCCs).

After losing talent to startups that had offered fat pay cheques to employees of IT service providers such as Tata Consultancy Services NSE -0.98 % (TCS NSE -0.98 %), Infosys NSE -1.56 %, Wipro NSE -0.67 % and HCL, now the trend has been reversed as the startup world is rocked by mass layoff.

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