MUMBAI: Domestic IT services major Tata Consultancy Services (TCS) on Monday said it has “honored” all job offers and anticipates reduction in compensation expectations in the second half of the year to “moderate”. .
Milind Lakkar said, “Reflecting our culture of being committed to our employees, we have honored all job offers we have made. Our investments in capacity building and organic talent development helped us increase the workforce this quarter. It has allowed its business to scale up substantially before growth.” , Chief Human Resource Officer (CHRO), in the tech firm’s July-September results.
TCS’s remarks came after delays in joining tech companies amid margin pressures and fears of an imminent US recession.
TCS began its July-September earnings session, and is the first among its peers to announce quarterly results. Country’s largest software services exporter reports 8.4% year-on-year growth in net income 10,431 crore for the September quarter. The Tata group company said its total revenue from services grew by 18% 54,309 crore in the period under review.
Earlier, firms such as Wipro had said it would recruit on its campuses “in a phased manner”, while TCS had told Mint that it was “shocking their campus hiring”.
Lakkar also commented on the ongoing Ebbing attrition, which stood at 21.5% (last 12 months) for the third quarter of the fiscal. “We believe our quarterly annual exodus peaked in Q2 and should look below this point, while compensation expectations for seasoned professionals remain moderate,” the CHRO said. Attrition in the previous (April-June) quarter was 19.7%.
The IT sector was in a hiring frenzy for almost a year and employees were demanding 60-70% hikes, counter offers were made to retain them. “With salary expectations normalizing and talent supply picking up across the industry, the company expects to begin declining in H2,” the company said.
TCS’ workforce as on September 30 was 616,171, a net addition of 9,840 during the quarter. The company has added 35,000 freshers in the first quarter and 20,000 freshers in the second quarter. In a press briefing, CHRO said that the firm may add 10,000-12,000 freshers in the coming quarters.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,