North America contributed 50.6% to the company’s total revenue in the second quarter ended September
Analysts believe local hiring is part of the shift from Indian companies operating internationally to becoming truly global firms
Bengaluru: Tata Consultancy Services (TCS) Ltd will complete its target of hiring 1,500 freshers from campuses in the US by March 2020, said a company executive. This is in continuation of its localisation efforts to hire more people in the US, the largest market for TCS.
North America contributed 50.6% to the company’s total revenue in the second quarter ended September.
“Our localisation efforts in the US as well as other geographies have been an integral part of our long-term planning and talent strategy and helps us in being closer to our customers and agile in responding to their needs," Milind Lakkad, global head of HR, TCS said in a telephonic interview.
While TCS does not disclose the number of its employees in the US, industry experts estimate the company has about 40,000 people in the US out of its total headcount of 450,738 people.
“The numbers are substantial and it has gone up year-on-year…In last few years, TCS has created more than 20,000 jobs in the US," Lakkad said.
Lakkad believes localisation is part of TCS' strategy to “grow roots" in the communities and markets where it operates. “We believe that assimilating local talent will lead to greater diversity in the talent pool, energising it while creating the capability to react rapidly to business opportunities."
Apart from rising visa costs and complexities, IT companies are increasingly hiring locally to meet specific client requirements. “The point is, we along with customers figure out where a particular job needs to be done…whether it can be done locally or from any other global location. It is not driven by supply, it is driven by demand and how the execution needs to take place," Lakkad said.
Analysts believe local hiring is part of the shift from Indian companies operating internationally to becoming truly global firms. “Local hiring is the only way companies like TCS can add value to the clients as well as contribute to the local economy which is necessary in the long term," said Siddharth Pai, IT consultant and venture capitalist.
On the impact of margins due to the higher wages, Pai said, “Over the years, these companies will have to get used to a lower margin regime and focus on clients and growth."
TCS’ HR initiatives such as the goIT programme have significantly contributed in building local talent in the US especially in STEM (science, technology, engineering and maths) skills. According to Lakkad, as part of its goIT program, 3,800 TCS employees have mentored more than 25,000 students across the US and Canada, helping them gain in-demand skills for 21st century careers.