Tata Consultancy Services (TCS), India’s premier IT services firm, announced a net reduction of 6,333 employees in its Q2 FY24 results. This follows a gain of 523 employees in the prior quarter.
Regarding the dip, Milind Lakkad, Chief Human Resources Officer, said, “Our strategy of proactively hiring bright freshers and investing in training them with the right skills is paying off. With that talent coming on stream and with reduced attrition, we were able to recalibrate our gross additions, keeping it below the departures during the quarter, driving up productivity and enhancing project outcomes,” as cited by Moneycontrol.
Comparison with Industry Trends:
In Q1FY24, TCS stood out by adding to its workforce. In contrast, other IT majors trimmed their numbers due to tough economic conditions. The trend hints that many IT giants may report fewer employees, especially when wages are major costs.
As of now, TCS boasts 608,985 employees as of September 30, 2023.
Attrition Rates and Hiring Pace:
The company’s attrition rate has fallen to 14.9 percent, a decline from the earlier 17.8 percent. Across the IT sector, hiring has slowed, a trend not limited to TCS. Interestingly, TCS added a notable 9,840 employees in the same quarter last year.
Salary Hikes and Onboarding Delays:
TCS also highlighted delays in onboarding lateral hires. This issue has lingered for several months. Last quarter, TCS raised salaries. Top performers saw hikes between 12-15 percent, and promotions were also granted.