The country’s largest IT services company TCS recently announced its fourth quarter results for the fiscal year 2023. Software major Tata Consultancy Services Ltd (TCS) on Wednesday said it had closed FY23 with a revenue of Rs 225,458 crore and a net profit of Rs 42,147 crore. For the fourth quarter of FY23, TCS had logged a revenue of Rs 59,162 crore and a net profit of Rs 11,392 crore. As a result of the demand challenges, Indian IT majors are expected to pull back on hiring to control costs.
TCS hired 44,000 freshers
Milind Lakkad, Chief HR Officer, said, “We are honouring all job offers, and have added 22,600 employees on a net basis in FY 23. During the year, we onboarded over 44K (44,000) freshers and our highest-ever number of experienced professionals.”
Drop in overall headcount sequentially
TCS reported net addition of 821 employees in headcount in the fourth quarter (Q4) of FY23 from 613,974 in Q3FY23. This comes as India’s largest software exporter had a drop of 2,197 employees sequentially in Q3. Company executives had that said the drop in its overall headcount sequentially, was on account of aggressive hiring over the last fiscal and was not a reflection of overall demand receding. Further, the company last reported a dip in headcount by almost 4,800 employees during the first quarter of FY21, at the peak of the Covid-19 pandemic.
Attrition rate down
Voluntary attrition for the quarter stood at 20.1% compared with 21.3% last quarter and the company said further improvements in the metric would be seen going forward.
Total headcount
At the year end, TCS had a head count of 614,795 with the software employees attrition rate of 20.1 per cent. The company’s net addition of employees during FY23 was 22,600.
Bringing more employees on payroll in North America
TCS said that it is bringing in more employees on its payroll in North America to replace subcontractors for long term cost benefits. “We had brought down our lateral hiring and our overall capacity addition, leveraging the strong investments in hiring made in the last year. We are systematically using the return to normalcy on travel to reposition our employee base in North America away from the short-term contingent labour to our more stable employee led delivery model,” said CEO Rajesh Gopinathan.
Setbacks in its biggest market North America and largest vertical
The company reported setbacks in its biggest market, North America, and its largest industry vertical — banking, financial services and insurance (BFSI) because of worsening sentiment due to tech layoffs and the implosion of Silicon Valley Bank. This led it to report a 0.6 per cent growth in constant currency on a sequential basis, which Seksaria said is unusual for the fourth quarter.
TCS hired 44,000 freshers
Milind Lakkad, Chief HR Officer, said, “We are honouring all job offers, and have added 22,600 employees on a net basis in FY 23. During the year, we onboarded over 44K (44,000) freshers and our highest-ever number of experienced professionals.”
Drop in overall headcount sequentially
TCS reported net addition of 821 employees in headcount in the fourth quarter (Q4) of FY23 from 613,974 in Q3FY23. This comes as India’s largest software exporter had a drop of 2,197 employees sequentially in Q3. Company executives had that said the drop in its overall headcount sequentially, was on account of aggressive hiring over the last fiscal and was not a reflection of overall demand receding. Further, the company last reported a dip in headcount by almost 4,800 employees during the first quarter of FY21, at the peak of the Covid-19 pandemic.
Attrition rate down
Voluntary attrition for the quarter stood at 20.1% compared with 21.3% last quarter and the company said further improvements in the metric would be seen going forward.
Total headcount
At the year end, TCS had a head count of 614,795 with the software employees attrition rate of 20.1 per cent. The company’s net addition of employees during FY23 was 22,600.
Bringing more employees on payroll in North America
TCS said that it is bringing in more employees on its payroll in North America to replace subcontractors for long term cost benefits. “We had brought down our lateral hiring and our overall capacity addition, leveraging the strong investments in hiring made in the last year. We are systematically using the return to normalcy on travel to reposition our employee base in North America away from the short-term contingent labour to our more stable employee led delivery model,” said CEO Rajesh Gopinathan.
Setbacks in its biggest market North America and largest vertical
The company reported setbacks in its biggest market, North America, and its largest industry vertical — banking, financial services and insurance (BFSI) because of worsening sentiment due to tech layoffs and the implosion of Silicon Valley Bank. This led it to report a 0.6 per cent growth in constant currency on a sequential basis, which Seksaria said is unusual for the fourth quarter.
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