India's Information technology (IT) firms, Infosys Ltd and Wipro Ltd are facing another challenge besides maintaining revenues, retaining their employees in the competitive market.

The company's are not only struggling to maintain the growth rate in revenues but are also facing problems in retaining their staff, indicating that the software engineers are noe making their decisions based on financial results.

India's largest software exporter, Tata Consultancy Services Ltd (TCS) and the fastest-growing Cognizant Technology Solutions were able to perform better in the area and emerged leaders in retaining their staff. TCS reported lowest staff attrition in 10 quarters during the second quarter of this financial year at 13.1 per cent. The figure was 7 per cent lower than the rate recorded in the same quarter two years ago.

On the other hand, the attrition rate at Infosys was 20.5 per cent during the quarter. Cognizant recorded a drop in attrition rate from 21.8 per cent in the second quarter of 2010 to 12.1 per cent in the first quarter of 2012.

HCL Technologies Ltd recorded the highest attrition rate in the industry at 25.3%, however it was an improvement over 36.4 per cent recorded in the same quarter of 2010.