TCS asserts it has escaped 'vicious cycle' of hiring and counter hiring

As a result of its hiring frenzy, Tata Consultancy Services (TCS) says it has managed to escape that “vicious cycle”. During the past two fiscal years, TCS has recruited more than 150,000 campus graduates. As India’s largest IT firm, TCS has implemented a salary increase of 5-8 per cent to facilitate upskilling among its workforce, driven by advancements in artificial intelligence (AI). TCS CEO and MD Rajesh Gopinathan, in the company’s annual report for the previous fiscal year, stated, “The supply side challenges of the last two years peaked in the first half of FY 2023, with employee churn reaching unprecedented levels. We broke out of the vicious cycle of hiring and counter-hiring within the industry by investing in onboarding an unprecedented number of fresh engineers – over 110,000 in FY 2022 and over 44,000 in FY 2023 – and training them on the technologies most in demand," reported Livemint. Gopinathan has since been succeeded by K Krithivasan as the MD and CEO. Gopinathan said in the report, “In FY 2023, we focused on utilising the spare capacity built up in the prior year, and recalibrated our hiring especially as attrition started falling in the second half of the year," according to Livemint. TCS recorded an attrition rate of 20.1 per cent in its IT services division for the year. With a net addition of 22,600 employees in FY 2023, the closing headcount stood at 614,795. Chairman N Chandrasekaran emphasised the importance of upskilling to remain relevant amid AI-led transitions. He said that companies will need to upskill their existing talent pool, hire and integrate new talent, and invest in research to navigate the energy, supply chain, and AI transformations. Chandrasekaran also noted that companies can leverage talent on a global scale. He added that effectively harnessing this talent requires an approach that leverages technologies like AI and cloud to facilitate efficient employee engagement and collaboration. With inputs from agencies Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.