Good news for techies, TCS to hire 75,000 this FY
Mumbai: Country's largest software firm TCS will increase its hiring target to 75,000 from 60,000 for this fiscal and has said attrition level has come down marginally for the company.
The attrition rate has stabilised during the second quarter and stood at 16.2% compared to the previous three months, the company said on Tuesday, adding it is working on more steps to further bring it down in the third and fourth quarter of the fiscal.
"We have revised upwards our hiring target due to the strong growth witnessed in the first half of the year. Accordingly, we will be hiring 75,000 this fiscal as against 60,000 as planned earlier," executive vice president and global head Ajoy Mukherjee told reporters in Mumbai.
"Attrition in absolute number has come down compared to last year. I am quite hopeful that all the initiative we are taking to control attrition will pay off. In Q3 and Q4 the attrition is expected to come down further," Mukherjee said.
He further said in the domestic market too attrition has come down compared to the last quarter and the company has seen a decline on month-on-month basis.
During the quarter, the company said there was a total gross addition of 25,186 people (net addition of 10,685 employees), taking the total employee strength to 3,35,620 on consolidated basis. This is the highest for the company in a quarterly basis.
The utilisation rate (excluding trainees) was at 86% while the attrition rate stood at 16.2%.
"On a quarterly basis, our retention levels have improved this quarter with a net addition of over 10,000 employees in Q2. Our hiring continues to be strong with all-time high of over 25,000 employees joining us this quarter," said Mukherjee.
Explaining that employee churn is an industry wide phenomenon, Mukherjee said "everyone who leaves ... people that we have in IT, it includes BPO, it includes people who have been hired for a project and once the project is over then they leave, all that is counter as attrition.
"So, as a company we need to understand where we are and we need to work with it. So as far as we are concerned, we would definitely like to bring it down. But all I would like to say is the kind of resources that we would like to hold onto, given the kind of competency that we need and the development of all that competencies, all those processes are working as planned".
Stating that TCS is well-prepared to meet its growth targets and that attrition won't hurt any such plans, he said, "We are absolutely geared up for our growth and for the businesses and for the requirement that our customer will have, be it any kind of competency."
On training of its over 3.35 lakh staff, he said over 30,000 employees have been already trained in new technologies this year and the company aspires to train the remaining employees as well in the near term.