For the first time in nearly two decades, Tata Consultancy Services (TCS) experienced a decline in its headcount for the third consecutive quarter, culminating in a reduction of its total employee base to 601,546 by the end of FY24. This downturn marks a significant departure from TCS’ historical trend of steady headcount growth.
Year-on-Year Decline
On a year-on-year basis, TCS witnessed a reduction of over 13,249 employees for the fiscal year, with a sequential decline of 1,759 employees. This decline in headcount contrasts sharply with the company’s performance in FY23, when it added a net total of 22,600 employees, bringing the total headcount to 614,795.
Shift in Hiring Strategy
TCS’ hiring strategy has undergone a notable shift, with the company recalibrating its approach towards freshers recruitment for FY25. While aiming for a target of 40,000 fresh hires, the company remains flexible in its hiring plans, adapting to evolving market dynamics.
Campus Recruitment Initiatives
Despite the decline in overall headcount, TCS remains proactive in its campus recruitment initiatives. The TCS National Qualifier Test, a key component of its recruitment drive, is set to commence shortly, providing a direct avenue for student hires.
Salary Hike and Attrition Trends
In a bid to retain talent and incentivize high performance, TCS has announced a salary hike ranging from 4.5 percent to 7 percent for its employees, with exceptional performers receiving increments in double digits. The company’s attrition rate for Q4 FY24 stood at 12.5 percent, with expectations of further reduction in the coming quarters.
Commitment to Diversity and Talent Development
TCS prides itself on its diverse workforce, comprising employees from 152 nationalities, with women accounting for 35.6 percent of its total staff. Emphasizing its commitment to talent development, TCS employees have collectively logged 51 million learning hours and acquired 5 million competencies. Additionally, the company boasts 73,000 contextual masters within its ranks, reflecting its ongoing investment in nurturing talent and fostering skill development.
