India’s largest IT services provider, Tata Consultancy Services (TCS) has announced its fourth-quarter results for the financial year 2022. The company has shared its observations and future plans with the media during an earnings call.
Rajesh Gopinathan CEO & MD, TCS said, “we’re seeing is a demand-supply mismatch in our industry. Fresher hiring and productive use of freshers is a long-cycle activity. But the industry step-up hiring over the last four quarters. We expect that as that supply hits productive use, that will ease up a lot of what was going on over the last few quarters,”
“So, that’s why when we say that as we look forward two quarters ahead, we think that attrition will flat line and then start tapering. The expectation is that the bulk of this hiring that has gone on across the industry in the last calendar year will start coming in and playing a role.” Rajesh added.
Commenting on the Salary Hike at TCS Rajesh said, “Overall, we think that salary hikes will be similar from a medium perspective to what was there last year with a slightly upward bias. While there will be pressures in individual markets or individual capability side, the hiring and the pyramid rebalancing that has happened will also give significant support.”
Commenting on the people front during the earning calls Samir Seksaria Chief Financial Officer, TCS said, “On the people front, this has been a standout quarter where we set many benchmarks. We had an all-time high net addition in the quarter as well as for the full year at 35,209 and 103,546 respectively, bringing the total headcount to 592,195.”
“The record net addition reflects the strength of our employer brand and our ability to draw talent across the world. We received several accolades and external validations this quarter for our commitment to excellence and talent management.” He added.
Commenting on achievements and recognitions he said, “We were recognized by the Confederation of Indian Industry, (CII), with the Role Model in HR Excellence and Prize for Leadership in HR at the CII HR Excellence Awards. The Role Model award has been given only twice before in the last 12 years. TCS ranked #1 in the LinkedIn Top Companies list of the Best Workplaces for Career Growth in India, with top scores in providing the ability to advance, skills growth, company stability, external opportunity, company affinity, gender diversity, and spread of educational backgrounds.”
On the diversity front, he said, “Our focus on diversity and inclusion and localized hiring in all our major markets has resulted in a very diverse workforce in 153 nationalities represented and women making up 35.6% of the base.”
“We continue to invest heavily in organic talent development. In Q4, TCSers clocked 22 million learning hours. For the full year, TCSers locked 60.3 million learning hours and acquired 3.5 million digital competencies. The number of contextual masters, that is, individuals who have demonstrated deep contextual knowledge of their customers business and IT landscape, hit a new milestone crossing 50,000 in Q4.” Sameer said on Talent management
He further said, “Moving to talent retention, we have a track record of consistently maintaining the highest talent retention in the industry, even in the face of high levels of churn across the industry. Our attrition in IT services continues to rise on an LTM basis and was at 17.4%. However, the quarterly annualized attrition is plateauing.”
“Lastly, we have announced a salary increment with effect from April 1st similar in quantum to prior years.” He added.
