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Wednesday, May 22, 2024

TCS records decline in Q4 hiring, annual attrition rate drops to 12.5%

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In Short:

Tata Consultancy Services (TCS) reported a decrease in hiring in the fourth quarter, with a headcount of 601,546. High-performers will get double digit hikes, while a 4.5-7% increment was rolled out for all employees. TCS plans to meet its fresher hiring target of 40,000 for the year. The COO is retiring after 40 years, and TCS does not intend to hire a replacement immediately. The company’s headcount has been declining over the past few quarters, but revenue continues to grow. Headcount numbers do not directly correlate with revenue growth, according to TCS Chief Executive K Krithivasan.

India‚Äôs largest IT major Tata Consultancy Services (TCS) reported a decline in hiring during the fiscal fourth quarter. The company’s headcount decreased by 1,759 to reach 601,546 employees by the end of the fiscal year.

Key Numbers and Figures

In the previous quarter, TCS witnessed a sequential decline of 5,680 employees. Overall, the firm ended FY24 with 13,249 fewer employees compared to FY23, despite a 3.5% growth in revenue.

Employee Increments and Hiring Plans

Increments ranging from 4.5-7% were provided to all employees from April, with higher hikes for high-performers. The company aims to meet its fresher hiring target of around 40,000 for the year.

TCS has already initiated recruitment from priority campuses and is organizing a national qualifier test to bring in a significant number of new hires.

Leadership Changes

TCS announced the retirement of its chief operating officer N. Ganapathy Subramaniam after 40 years of service. The company plans to redistribute his responsibilities among senior colleagues without an immediate replacement for the COO role.

Industry Trends and Outlook

Similar to other IT companies, TCS has observed a consistent decrease in headcount over recent quarters. The entire IT sector is likely to witness a flat or negative workforce addition for the current fiscal year.

CEO Statement

Chief executive K Krithivasan emphasized that revenue growth and headcount are not directly correlated. He highlighted the company’s focus on efficiency and better deployment of associates, with new hire training taking 6 to 9 months before deployment.

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