Tata Consultancy Services (TCS) to Hire 15,000 in the next quarter
Written by The Editor
Tata Consultancy Services (TCS), India's largest software exporter, said it has hired 50,000 personnel in the nine-month period ended December 2010 and expects to add another 12,000-15,000 in Q4.
TCS added 20,219 people (gross) during the quarter, its highest addition yet, taking its total headcount to 1,86,914 at the end of the December quarter. Tata Consultancy Services (TCS) plans to recruit up to 15,000 in the quarter ending March, company officials said on Monday at an event announcing the third quarter results.
Mr Ajoyendra Mukherjee, Vice-President and Head of Global Human Resources, said that the company has already crossed its 2010-11 target of hiring 50,000 within the first three quarters itself. In the quarter, trainee hiring was at 7,598, while 7,737 lateral hiring took place from within the industry.
“Our gross hiring has touched 50,000 in the first 3 quarters. We're looking to add around 12,000 to 15,000 people in the January-March period. The majority hiring will be in India, followed by the US, Latin America and other Asia-Pacific countries,” he said.
The company will make offers to 37,000 fresh graduates from college to join in 2011-12. Of these more than 23,500 offers have already been made at 171 educational institutions. The process should be complete between mid- and end-February.
He added that the variable pay for the quarter ending December 31 has been 100 per cent. The company is also looking at deciding increments in the current quarter and will decide the wage payout at the time of budgeting.
TCS's attrition rate has marginally gone up to 14.4 per cent from 14.1 per cent in the second quarter of this fiscal. Attrition in the same quarter last year stood at 11.5 per cent. The net addition in the third quarter was at 12,497, while the gross addition stood at 20,219. The utilisation rate (including trainees) was 77.1 per cent.
Asked if the company would add new business centres in emerging markets, like China and Latin America, CEO and MD, Mr N. Chandrasekaran, said, “We don't need new delivery centres. At present, we need to scale up our existing operations.” The company has no dramatic hiring plan for China at the moment, he added.
However, the company faces the major challenge of attrition, TCS CEO and MD, N Chandrasekaran, said. "Our short-term challenge is we have to continue to retain people although the attrition rate has come down in Q3 FY 11," Chandrasekaran said.
Utilisation in Q3 FY 11 remained at 83.8 per cent (excluding trainees) and 77.1 per cent (including trainees). The attrition rate in Q3 for IT Services was 13.2 per cent and BPO 24.7 per cent while overall attrition was at 14.4 per cent.
At the end of Q3, non-Indian nationals formed 6.8 per cent of the total employee base and 31 per cent were women.
