Tata Consultancy Services (TCS), India’s largest software exporter, is gearing up to onboard approximately 40,000 freshers in the fiscal year 2025, reiterating its commitment to nurturing young talent. CEO and MD K Krithivasan emphasized the company’s focus on sustaining its robust talent pipeline to meet evolving market demands.
Addressing Headcount Decline
Despite posting three consecutive quarters of headcount decline, TCS remains steadfast in its commitment to bolstering its workforce. In FY24, the company witnessed a significant reduction in full-year headcount, marking a deviation from its historical trend. Krithivasan attributed this decline to the inherent lag in training fresh recruits before they become productive and billable, emphasizing the company’s long-term approach to talent development.
Strategic Hiring Approach
While TCS aims to maintain consistency in its fresher hiring numbers, its approach towards hiring experienced professionals will be more dynamic. Krithivasan revealed that hiring decisions for experienced roles will be made on a quarterly basis, aligning with immediate business requirements and demand fluctuations in the market.
Progressive Hiring Initiatives
TCS has already kickstarted its fresher hiring initiatives for FY25, with plans to recruit 10,000 freshers through its National Qualifier Test (NQT) from top engineering colleges. This proactive approach underscores TCS’ commitment to nurturing young talent and fostering a conducive environment for skill development and growth.
Balancing Headcount Dynamics
Krithivasan downplayed concerns over the recent headcount decline, citing marginal variations in headcount against a backdrop of steady revenue growth. He emphasized the significance of productivity gains and the inherent lag between hiring and deployment in mitigating the impact of headcount reductions.
Attrition Trends and Outlook
TCS’ attrition rate witnessed a steady decline, reflecting the company’s efforts to enhance employee engagement and retention strategies. With attrition falling to 12.5 percent in the recent quarter, TCS anticipates further improvements in attrition levels in the subsequent quarters, underscoring its commitment to fostering a conducive work environment for its employees.
