Bengaluru: India’s largest IT services firm, Tata Consultancy Services or TCS, plans to hire over 40,000 freshers from campuses in India in the fiscal year 2021-22.
The firm with a base of more than 5 lakh employees, had hired 40,000 graduates from campuses in 2020 and will do better on that number, the company’s chief of global human resources Milind Lakkad said while speaking to reporters.
He added that the coronavirus pandemic-related restrictions do not pose any difficulties in hiring and added that last year, a total of 3.60 lakh freshers had appeared for an entrance test virtually.
“From the campus in India, we hired 40,000 last year. We will continue to hire and hire 40,000 or more this year in India,” Lakkad said, adding that lateral hiring will also be “robust” this season.
Similarly, the largest employer in the private sector will also do better on the 2,000 trainees hired from American campuses last year, he said, without sharing an exact number.
Lakkad said a lot of planning goes into hiring from campuses and it is not ‘just-in-time’ hiring when a business deal gets signed up, and typically it takes over three months before a resource gets on a project, according to a PTI report.
The company’s chief operating officer N Ganapathy Subramaniam said there is no dearth of talent supply in the country and also disagreed with concerns about its cost. He termed Indian talent as “phenomenal” given their skill sets and the work culture.
Its chief executive and managing director Rajesh Gopinathan said it often gets asked if the organisation is too large but added that the way it is structured makes it possible from a management and nimble-footedness perspective.
TCS has broken the organisation into small, autonomous entities with support from the top which helps take care of challenges, he said, pointing out that several entities like the railways, armed forces and political parties function with large pools of people.
Lakkad said the company expects the very low attrition of 8 per cent levels to go up once the situation normalises, adding that the normal levels are between 11-12%. Even if the attrition goes up, the company’s operating model can ensure that the work or margins are not impacted, he added.
Its newly appointed chief financial officer Samir Seksaria said even though the company expects discretionary spending to normalise by the end of the fiscal, they are a small subset of its overall expenditure. There are other levers to compress costs as well, he said, stressing that structurally there are no deterrents to the aspired operating profit margin band of 26-28 per cent, which was missed in the first quarter.
TCS June quarter results
Speaking a day after the company announced its June quarter results, which showed a setback on its India business, Gopinathan said the 14% dip in revenues sequentially does not represent any cyclicality in business and was purely out of its businesses like online exams and passport making coming to a “standstill” because of the lockdowns.
He said the company had faced similar troubles during the first lockdown as well in the first quarter of the financial year 2020-21 and added that though the announcements were about local lockdowns, they impacted activity across.
Subramaniam hinted that the lost revenues – which were pegged at ₹350 crore by Gopinathan on Thursday – will be made up in the second and third quarter of the financial year, explaining that these revenues are from tests and exams conducted by its unit Ion.
Meanwhile, Lakkad admitted that the IT firm indeed gets a few requests from employees who are against vaccination but tries to explain to them the importance of taking the jab.
Gopinathan said Indians should not be too harsh on themselves with the slow pace of the vaccination, pointing out that the volumes are still high. He, however, added that this does not mean they can be complacent on the programme, and added that there is a need to up the pace.
The company scrip closed 1.52% down at ₹3,207.75 apiece on the BSE.
Meanwhile, the employee headcount at TCS crossed the 500,000 mark in the June quarter, with a total workforce of 509,058 as of 30 June. TCS saw a net addition of 20,409, its highest quarterly net addition ever.
“The workforce continues to be very diverse, comprising 155 nationalities and with women making up 36.2% of the workforce,” the Tata group firm said.
“Employees logged over 10 million learning hours in Q1. Over 478,000 employees have been trained in Agile methods and over 407,000 employees have been trained on multiple new technologies.”
TCS also said that the “IT Services attrition rate (LTM) was at 8.6%, the lowest in the industry.”