Although the the leading Indian technology giant Tata Consultancy Services (TCS) has added just 14,000 workers in net terms during the last quarter of reporting TCS claims it’s on track to hit its goal of adding 40,000 new faces to its workforce in the coming year. This is at a time that TCS did not meet its quarterly analyst’s revenue forecast.
TCS stated that the main reason for the slow hiring rate in the quarter was the capacity it has built up over the last one year. The company’s CEO clarified that the reason was not influenced by business growth expectations.
TCS has hired a large amount of talent from the lateral quarter, and has maintained the goal of hiring 40000 freshers in the coming year.
TCS CEO N Ganapathy Subramaniam has stated that he did not anticipate the demand to slow down or even a re-prioritisation of spending on behalf of TCS clientele in the near period, at least for the current fiscal year.
There was an increase of 14,136 workers in the last quarter. The company also saw a greater loss rate, which was more than 19.5 percent. COO anticipates it to remain at this level for another quarter , before slowing down during the fiscal year’s second quarter.
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The total staff for TCS was 606,331 as of June 30. The company’s workforce is extremely diverse with workers from 153 different nations. Women comprise 35.5 per cent of TCS employees, according to the company.
IT majors, including TCS, Accenture reduce hiring in Q1FY23. HCL hired only 2,089 employees
New Delhi: The top Indian IT service companies such as TCS, Accenture, HCL’s new hiring numbers varied from 10,000 to 2,000 in the initial quarter of this fiscal year. These numbers are quite insignificant when compared to increase in hiring in prior quarters.
Businesses are cutting down on hiring as they take a more cautious strategy to withstand inflationary or geopolitical related headwinds. IT industry giant Accenture has hired just 12,000 employees in the final quarter of the year that ended May, as compared with the average of 40,000 hirings over the last three quarters.
Tata Consultancy Services took in 14,136 new recruits during the quarter between April and June. This is quite a contrast from the typical quarterly hiring rate of 26,000 the previous financial year. The rate of attrition in TCS was 19. 7 percent in the past 12 months.
In the same way, HCL Technologies’ new expansions only amounted to 2,089 workers in the initial trimester of FY 2023. It employed 11,000 workers in the third trimester of FY22. The attrition rate was very high at 23.8 percent.
“We’re in the realm of a “realistic economy” in which companies are expected to earn a profit and add value to their markets and have a sound budget to withstand the current pressures of inflation, particularly in regards to keeping their core workforce on board,” Phil Fersht, HfS Research’s chief executive, HfS Research told Economic Times.
He said that the rapid double-digit growth over the last 12-18 months has slowed down as demand slows off, and the massive resignation slows down over the last couple of months.
Executives from companies and analysts have interpreted this hiring cutback a normalization of talent acquisition. They said that the the demand for skilled talent is expected to continue to be strong.
TCS CFO Rajesh Gopinathan, after announcing the Q1 results on Friday, claimed that the “company was a bit softer on hiring ” even though it “remains on track to take on new employees of 40,000” during the fiscal year. It’s worth noting it was the IT bellwether employed a staggering 103,000 new workers during FY 21-22.
While TCS stated that its top clients are starting discussions on the possibility of economic downturn, HCL declared it was “demand (has seen) reduced in some pockets.”