A senior official at MindTree said attrition in the company, which is close to 25%, is expected to rise sharply with this new development. "The company will not offer any extra incentive to employees to remain with us, but at the same time we trust our employees and expect them to stay on during tough times as well," said the official on grounds of anonymity.

Most top recruiters say the ongoing churn in senior management at Wipro, where Soota once held the position of President, Wipro Infotech, and the keenness of employees at midtier IT firm MindTree to join their ex-chairman augur well for the new venture.

"There is a halo effect, that founders like Soota have around them which is attractive to employees and makes them want to join the new venture," said Aditya Narayan Mishra, general manager of the Staffing Solutions Group in Ma Foi.

He said a movement from MindTree is definitely expected since the new company will have similar lines of business. Top recruitment firms are already scrambling to become vendors of the new company.