The Tata Consultancy Services (TCS) management said the company has offered jobs to 39,000 people at the entry level in FY20, as it prepares to strengthen its mid-level talent in anticipation of a better 2020-21, despite the ailing growth in the banking, financial services, and insurance (BFSI) vertical.
The company wants to improve its execution levers further to cater to growing business opportunities in FY21, said Milind Lakkad, the executive vice president and global head of human resources of TCS in an interview. The company expects BFSI growth to pick up within the next two to three quarters.
TCS reported 0.3% sequential growth in revenue for the December quarter in constant currency terms, far lower than the 1% growth analysts had estimated. The 25% margin performance was aided by currency benefits and cost-efficiency measures. Following its announcement that Q3 could see softness in the key BFSI and retail verticals, expectations were running low. Yet, the company remained confident on hiring freshers for the year ahead.
“Through the TCS national qualifier test for FY21 we have already made 39,000 offers. So, when we are asked about our medium- to long-term plans, this is what it is," he said.
The fresher hiring programme was introduced in 2018. It attempts to expand its hiring reach across engineering colleges in India through online applications. So far in FY20, more than 93% of the 30,000 associates who were given offers in FY19 were on-boarded in the first two quarters of this fiscal. The others are likely to absorbed in the next few months.
This “frontloading" of talent helped the company report record net employee addition numbers in Q1 and Q2. In Q2 alone, 14,000 freshers were added to its workforce.
“We will decide the onboarding process (for freshers) over the next month. We may front load again, but a decision is yet to be made," said Lakkad.
In the nine months ended December, the company added 22,400 associates, but reduced its headcount in the December quarter by 4,063. On a sequential basis, this is the first decline in employee count in 10 quarters.
“We’ll continue to add people to the base of the pyramid through fresher hiring. We also continue to ensure that the middle layer teams are skilled enough to manage the bottom, both from a technology and management perspective, along with the senior management," said Lakkad.