This study explores the dynamic relationship between talent management practices, employee retention, and organizational performance within the Information Technology (IT) sector. In a rapidly evolving and highly competitive environment, retaining top talent has become a critical determinant of sustained business success. The research investigates how strategic talent acquisition, development, and retention initiatives influence key performance indicators such as productivity, innovation, and employee engagement. Utilizing a mixed-methods approach, including surveys and interviews with HR professionals and IT employees, the study identifies effective talent management frameworks that correlate strongly with reduced turnover rates and improved organizational outcomes. The findings emphasize that organizations investing in employee development, recognition, and career progression are more likely to retain skilled personnel and gain a competitive edge in the digital economy.