TCS says it has honoured job offers; expects attrition to ebb in H2
- TCS reported an 8.4% year-on-year growth in net income at ₹10,431 crore for the September quarter. The Tata Group company said its total revenue from services grew 18% to ₹54,309 crore in the period under review.
MUMBAI: Homegrown IT services major Tata Consultancy Services (TCS) on Monday said it has "honoured" all job offers made and estimates attrition to taper down in the second half of the year as compensation expectations "moderate".
"Reflecting our culture of being committed to our employees, we have honored all the job offers we had made. Our investments in capacity building and organic talent development have allowed us to substantially grow our business ahead of headcount addition this quarter," said Milind Lakkad, chief human resources officer (CHRO), in the July-September results of the tech firm.
TCS's comments come on the back of joining delays in tech companies amid margin pressure and fears of looming recession in the US.
TCS kicked off the July-September earnings season, and is first among its peers to announce quarterly results. The country's largest software services exporter reported an 8.4% year-on-year growth in net income at ₹10,431 crore for the September quarter. The Tata Group company said its total revenue from services grew 18% to ₹54,309 crore in the period under review.
Earlier, firms like Wipro had said it will onboard its campus recruits in a "phased manner" while TCS had told Mint that it was "staggering their campus hires".
Lakkad also commented on the ebbing attrition going ahead, which stood at 21.5% (last 12 months) for the fiscal third quarter. "We believe our quarterly annualized attrition has peaked in Q2 and should see it taper down from this point, while compensation expectations of experienced professionals moderate," said the CHRO. Attrition in previous (April-June) quarter was 19.7%.
For about a year, the IT sector was in a hiring frenzy and employees were asking for 60-70% hikes, counter offers were made to retain them. "With normalizing wage expectations and talent supply catching up across the industry, the company expects attrition to start to taper down in H2," said the company.
TCS’s workforce was at 616,171 as on 30 September, a net addition of 9,840 during the quarter. The company has onboarded 35,000 freshers in the first quarter and 20,000 in the second one. In a press briefing the CHRO said the firm may add another 10,000-12,000 freshers in the coming quarters.
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First Published:10 Oct 2022, 06:05 PM IST
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