India’s largest IT services exporter Tata Consultancy Services (TCS), added 22,600 employees during FY23 which is a sharp decline compared to its net addition in FY22.
Lowest net headcount addition
This is the company’s lowest net headcount addition since FY15 when it had added 19,000 employees on a net basis during the year.
In the previous year, it had added 1.03 lakh employees on a net basis.
The company had added 40,185 employees on a net basis in FY21, 24,179 in FY20 and 29,287 in FY19.
The company’s headcount counting the latest addition, as of March 31, 2023, stood at 6,14,795.
Marginal increase on net basis
During the last quarter of the fiscal, TCS saw a marginal increase of 821 employees on a net basis after last quarter’s decline of 2,197 employees, highlighting the current unrest in the IT sector.
The firm added 35,209 employees in the same quarter last year.
In Q1FY23 TCS added 14,136 employees, 9,840 in Q2, saw a decrease of 2,197 employees in Q3, and an increase of 821 in Q4.
HR Officer’s words
Milind Lakkad, the company’s Chief Human Resources Officer, said, “We are honouring all job offers, and have added 22,600 employees on a net basis in FY 23.
During the year, we onboarded over 44K freshers and our highest-ever number of experienced professionals.”
He said that the hiring slowdown last quarter was not something unexpected, but was planned this way.
Attrition
Meanwhile, attrition for the quarter fell to 20.1 percent, continuing its downward trend from last quarter’s 21.3 percent.
As the talent market cools off, attrition rates have continued to decline.
It also aligns with the company’s expectation that attrition will continue to fall in coming quarters.
Hiring slowdown to continue
Simultaneously, the hiring slowdown will continue as companies take a cautious approach to fresh hiring after the highs of FY22.
Experts expected a hiring slowdown in Q4FY23, and expect hiring to be subdued for at least the first two quarters of FY24.
