Tata Consultancy Services (TCS) has announced its Q1 results of FY22 last month. According to the first-quarter results, over 43,000 employees in TCS resigned in the last 12 months.
The attrition rate was reported at 8.6%. Currently, TCS has a total headcount of 509,058. The company has crossed the 5.0 lakh milestone in the total workforce.
There is nothing like that TCS management is doing something wrong, it is because of the tremendous amount of demand for those digital talents and low supply especially in the 3–5 years of experience bracket.
However, N Ganapathy Subramaniam, Chief Operating Officer of TCS 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.
According to a recent report commissioned by Amazon Web Services Inc., “The number of workers in India requiring digital skills will need to increase nine times by 2025 and the average worker in India will need to develop seven new digital skills by 2025 to keep pace with technology advancements and demand,”
This would amount to a total of 3.9 billion digital skill training from 2020 to 2025. At present, digitally skilled workers represent only 12% of India’s workforce. Data shows that the future of businesses will be hyper-digital and largely contactless, according to experts.
If we look at data and compare it with peer companies, TCS still has the lowest attrition in the Industry. According to recent quarterly results, Infosys was at 13.9%, Wipro at 15.5%, HCL Technology at 11.8%, Accenture at 17% attrition, and Cognizant at 31%.
To bridge the gap, TCS will be hiring over 40,000 freshers from campuses in India in the fiscal year 2021-22 and the company had said that lateral hiring will also be “robust” this season, said Milind Lakkad – EVP and Global Head, Human Resources, TCS
Explaining the company’s Covid19 immunization drive Lakkad said that in less than two months, over half a million associates and family members and over 70 per cent of the associates had been vaccinated.
’We are on track to vaccinate all TCSers and families by September,” said Lakkad.