Tata Consultancy Services (TCS) on Thursday reported an increase on the hiring front during the April-June quarter — its first after three straight quarters of decline. The company saw its headcount increaseby 5,452 sequentially, ending the April-June period with a total headcount of 606,998.
During the March quarter, TCS had reported a sequential headcount dip of 1,759, even as revenue grew 3.5% on-year. The firm had ended FY24 with 13,249 fewer employees compared to FY23, the first in two decades, which analysts had described as a broader trend plaguing the IT services industry.
In contrast, Q1, the company said had started on a “good note” on all fronts including hiring. TCS saw revenue increase 5.4% year-on-year and 2.2% sequentially in the June quarter. In constant currency terms, revenue rose 4.4% in the quarter under review versus the year-ago period.
TCS adds 5,452 jobs in Q1FY25, attrition down to 12.1%
Prosus to lead $100 million funding in BlueStone
NTPC Green IPO to fetch over `8,000 cr, says CMD
Ultratech Q4 results 2024: Net profit up 35.2%, declares dividend of Rs 70/share; Read to know more
The attrition rate at the tech services major in Q1 eased further to 12.1% in Q1 from 12.5% in the March quarter (Q4), a level the company hopes to sustain through the year, it said on Thursday when announcing its June quarter numbers in Mumbai.
Milind Lakkad, chief HR officer of TCS, said that the IT major had given increments of 4.5-7%, depending on performance, for all employees starting April. High performers were given double-digit hikes, he said.
However, it held back variable pay to employees who did not maintain their eligible office attendance in FY24. “We do not give out the amounts of what the impact would be, but it is something which we are doing more from basically bringing in the discipline standpoint and not for any other reasons,” Lakkad said.
He further highlighed the company’s success in bringing employees back to the office, with 70% of TCS staff now working on-site. “I’m not too much worried about the quantum of the number of people who would basically be not coming and getting affected because of this,” he said.
The company also expects to meet its annual fresher hiring target of about 40,000 in the current financial year (FY25), Lakkad said. 11,000 freshers were onboarded in Q1, of which a “small part” were from the previous recruitment cycle of FY24, he added. Unlike in previous quarters, there were no delays in onboarding fresher talent in Q1 and the company hoped to maintain this trend through FY25, he said.
TCS has already gone to priority campuses and made offers and is now in the process of concluding the national qualifier test, which will also bring in “significant numbers” of hires, Lakkad said.
He said that hiring from campuses was a key strategy for the company and freshers onboarded were put through a rigorous training programme. Skill gaps were filled after accessing the fresher talent onboarded by laterally hiring from the marketplace.
“There are skill gaps across the board, from niche to generic. Having said that, our core strategy remains hiring from campuses. We plan carefully when it comes to overall hiring. Lateral hires are considered after looking at the fresher talent that has been brought on board,” he said.
From: financialexpress
Financial News
