Tata Consultancy Services (TCS), the first of the IT majors to report its earnings for the first quarter of the 2024 fiscal year, added 523 employees on a net basis during this quarter, a slight decline from last quarter’s net addition of 821 employees.
With this, the company’s headcount stood at 6,15,318 as of June 30, 2023. The slowdown in hiring is expected as the industry faces mounting macroeconomic headwinds leading to a demand environment.
The attrition levels of India’s largest IT services company dipped to 17.8 percent on the last-twelve-months basis, down from last quarter’s 20.1 percent.
The company has been slowing down its net addition significantly in the last few quarters, after it added a record number of employees in FY22. It added 22,600 employees on a net basis in all of FY23, as opposed to 1.03 lakh in FY22.
In the same quarter last year, TCS had added 14,136 employees to its rolls on a net basis.
The company also rolled out salary hikes to its employees during the quarter. “We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle,” Chief Human Resources Officer Milind Lakkad said in a statement.
“We remain focused on developing, retaining and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to office to foster our culture,” he added.
He stated that 53 percent of the company’s workforce is in office thrice a week — which comes after the company mandated employees to come to office in accordance with its roster.
Lakkad has maintained his previous stand on attrition numbers, and said that the company expects attrition to trend down and be in the long-term range by the second half of the year.
Additionally, at a time when fresher onboarding delays have continued in the industry for over a year and TCS has begun delaying the onboarding of lateral recruits as well, Lakkad said that they are committed to honouring all offers that were made, with the company’s focus on “leveraging the capacity” it built last year.
TCS reported Rs 59,381 crore in revenue, up 0.37 percent on a QoQ basis and its profits came in at Rs 11,074 crore (down 2.8 percent), in line with muted estimates amid a weak demand environment.
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