TCS Q2 FY24 - Updates Onboarding and Hiring

In TCS there will be some onboarding delays due to the unstability of the business clients all the offers will be honored definitely. The hiring is lesser than attrition rate and the trainees will be hired constantly like every year but the numbers may change due to business requirements. Investing on upskilling the employees given a huge benefit. In this quarter the BFSI has slightly reduced but compared to last year it has a growth.

TCS also acknowledged delays in onboarding lateral hires, an issue persisting for several months. Last quarter, TCS implemented salary raises, with top performers receiving hikes between 12-15 percent, and promotions were also granted.

TCS has revealed a net decrease of 6,333 employees in its Q2 FY24 results. Milind Lakkad, the Chief Human Resources Officer, attributed this decline to the company's strategy of actively recruiting and training new talent with the right skills. He mentioned, “Our strategy of proactively hiring bright freshers and investing in training them with the right skills is paying off. With that talent coming on stream and with reduced attrition, we were able to recalibrate our gross additions, keeping it below the departures during the quarter, driving up productivity and enhancing project outcomes,” as cited by Moneycontrol.

In contrast to some other major IT companies that reduced their workforce due to challenging economic conditions, TCS stood out by adding employees in Q1 FY24. This trend suggests that many IT giants may report lower employee numbers, particularly considering that salaries constitute a significant portion of their expenses.

As of September 30, 2023, TCS currently employs 608,985 individuals. The attrition rate has dropped to 14.9 percent from the previous 17.8 percent. The entire IT sector has experienced a slowdown in hiring, a trend mirrored at TCS. Notably, in the same quarter of the previous year, TCS added a substantial 9,840 employees.

TCS also acknowledged delays in onboarding lateral hires, an issue persisting for several months. Last quarter, TCS implemented salary raises, with top performers receiving hikes between 12-15 percent, and promotions were also granted.