India's largest IT software exporter Tata Consultancy Services (TCS) would recruit around 42,000 freshers or "little higher" in FY26.
"We have onboarded 42,000 trainees in FY25 and FY26 number will be similar or little higher," said CHRO Milind Lakkad during the fourth quarter press conference.
This comes at a time when the company's headcount increased in FY25 after the metric declined for the first time in 19 years in FY24. Campus hiring is often seen as a lead indicator for demand.
Lakkad added that artificial intelligence (AI) will have a bearing on hiring as the nascent technology for business is a new opportunity. "We will need new people for that. AI for IT will have an impact. We believe that as we move forward, we will gain productivity. We will deliver more work for our customers," he added.
He also added that the company will hire AI talent from all geographies as India alone doesn't have enough trained and skilled manpower.
The Mumbai-based company, on April 10, said its headcount increased by 6,433 year-on-year during the financial year 2023-24. On a sequential basis, TCS' headcount increased by 625 employees in January-March.
With the latest increase, TCS now employs 6,07,979 people, the company said on April 10.
For Q4, the Mumbai-headquartered company's consolidated net profit fell nearly 2 percent year-on-year to Rs 12,224 crore, amid the ongoing macroeconomic headwinds for the IT sector. India’s largest IT services company had reported a consolidated net profit of Rs 12,434 crore in the corresponding quarter last year.
TCS’ consolidated revenue from operations rose 5.3 percent year-on-year to Rs 64,479 crore in quarter ending March, as against Rs 61,237 crore in the same quarter a year ago.
It’s earnings missed expectations. A Moneycontrol poll of four brokerages pegged TCS’ January-March net profit at Rs 12,554 crore, and revenue at Rs 64,840 crore.
Shares of the company closed at Rs 3,246.60 on April 9, down 1.41 percent on the National Stock Exchange.
TCS also indicated a delay in awarding annual wage hikes that were due for the 607,979-strong workforce in April.
"Considering the uncertain business environment, we'll decide during the year when it will happen," Lakkad said.
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