I myself was working in an IT industry. But I left it coz i too had issues with the working environment. I used too slog for hours but still my salaries were nominal. Also, when there was work, it was too hectic, else we had to sit on the bench. SO there is no specific reason but as u said its lesser pay and low recognition that causes attrition.
I partly agree with you but its like employees are never satisfied.People find issues with their jobs no matter what.
What i believe is that the sector which is very competitive and creates a lot of jobs suffers from high attrition rate.
The real problem for high attrition is ample opportunities in the market as well as lack of recognition for good work. If you consider the big IT companies of India, they are like factory of software workers where an individual is gets lost in the crowd. He is not able to create an indentity for himself and starts looking elsewhere for the same.
I think this is a pure demand supply problem. Since IT Industry has grown too fast in too little time and supply of skilled people available in market don't match the demand for the same.
Consider these details as of today:
1. All Indian IT Services companies started with product support and maintenance work during 90s and it remained so till early 2000s. Development work was seldom outsourced.
2. All IT Services MNCs have majority of work done in India now.
3. All IT Products companies have their majority of workforce working/originating in India.
4. Almost all Fortune 500 businesses have completely shut down or reduced their IT departments to 5-10% of their 1999-2003 levels.
These facts continue to make outsourcing lucrative and so jack up the demand for IT professionals. With each projects profitability at 25-35%, companies can continue to do head hunting for skilled IT people.
There is more to it.IT firms do not care about the employees especially the so called top 4.The perception if one leaves there are 100 standing, which is not wrong but till when this attitude can carry on.The attrition rate of one top IT company stands at 17.5% which is ridiculous.Its not about demand supply but mainly the bad policies and attitude of the companies towards the employees else how do you explain this unrealistic attrition firstname.lastname@example.org%.
India is the IT Capital of the world and has umpteen jobs in the IT. Here people have lots of option to switch to other companies, which are also having almost the same environment as thier previous company(ofcourse some are exceptions).
So, why does a person changes his job ?
I feel that money is the ultimate motivator by changing the jobs people can get good hikes. Even recognition also matters but only in case of a person having more than 7 or 8 years experience and we know that the maximum attrition is in the group of 3-4 years exp people.