TCS is rolling out salary increments effective October and details of which are being worked out. These increases would be applicable across the job bands
India’s largest IT services major, Tata Consultancy Services (TCS), hired close to 16,000 people in the September quarter (Q2) and will roll out salary increases from October, said Chief Executive Officer Rajesh Gopinathan.
This comes after the company reported one of its best performances for the quarter ended September 2020. The company reported a revenue of $5.24 billion, up 7.2 percent quarter-on-quarter (QoQ) and down 1.7 percent year-on-year (YoY).
According to Gopinathan, the growth TCS saw in the quarter was a pleasant surprise given that the company had said in Q1 that they expect recovery from Q3. The growth was aided by increasing investment in digital, which the company was able to tap into.
The company reported deals worth $8.6 billion, including $2 billion deal from Phoenix group. TCS expects the demand recovery to be sustainable in the coming quarters as well.
Speaking to media persons during the results announcement on October 7, Gopinathan said the company is rolling out salary increments effective October and details of which are being worked out. These increases would be applicable across the job bands.
In terms of hiring, the company hired close to 16,000 people, both freshers and laterals, for the quarter.
Milind Lakkad, Global Head – Human Resources, said the company on boarded 7,200 freshers in India, 1,000 in the US, and close to 100 in Europe. He did not disclose the number of laterals hired in the quarter.
The attrition stood at an all-time low at 8.9 percent during the quarter. At the end of September 2020, the company employed 4,53,540 with a net addition of 9,864. The headcount had declined by 4,788 in the June quarter.
Gopinathan said during a media interaction in July that the company will open up lateral hiring, which was suspended in April to June quarter due to uncertainty around the coronavirus pandemic. The company also deferred the on-boarding of freshers, which resumed from mid-July.The company had given 40,000 offers in total to freshers for FY21. TCS has launched a share buyback of Rs 16,000 crore.