TCS Will Hire 1500 Freshers In America; Will This Lead To Job Cuts In India?

TCS Will Hire 1500 Freshers In America; Will This Lead To Job Cuts In India?
TCS Will Hire 1500 Freshers In America; Will This Lead To Job Cuts In India?

TCS has confirmed that they will hire 1500 Americans across their US locations, by the time this fiscal year ends (March, 2020).

As per earlier reports, TCS is embracing the pyramid structure for optimizing their revenues, and now, the big question: Hiring American freshers will lead to job loss for experienced Indian employees?

TCS: We Will Hire 1500 Freshers From America

TCS has confirmed that by the time fiscal year of 2019 ends, that is March 31, 2020, they will complete their target of hiring 1500 Americans from campuses.

This is being done as part of their ‘localization’ efforts in the USA, and hiring more locals to deliver their US based projects.

Confirming this, Milind Lakkad, global head of HR, TCS said, “Our localisation efforts in the US as well as other geographies have been an integral part of our long-term planning and talent strategy and helps us in being closer to our customers and agile in responding to their needs,” 

Almost 50% of revenues generated by TCS came from USA last quarter, and in the scenario of rising visa costs, and uncertainty over visa approvals, TCS knows that hiring more Americans, that too freshers, make sense for the IT behemoth.

As per estimates, TCS employs around 40,000 Americans, out of 4.5 lakh employees, globally, out of which majority are in India.

Now, the big question: Will hiring more American freshers convert to job loss in India, for experienced employees?

TCS’ Pyramid Rationalisation Means Job Loss In India?

In India, TCS has resorted to the ‘Pyramid Rationalisation’ of its workforce.

The logic is clear: Hire more freshers at low pay, and reduce experienced employees having more than 4 years of experience to reduce revenues.

In the month of October this year, TCS CFO V Ramakrishnan had confirmed that TCS is executing the Pyramid Model to save costs, but he denied that any employee will be forced to resign, or imposed VRS.

However, he said that ‘performance-linked’ job cuts is a possibility.

This means that experienced employees who are not ‘performing’, will be asked to leave.

Several analysts have said that performance-related exits will increase, even as hiring freshers will also increase.

An analyst had said, “It means only one thing – they have to reduce middle and senior management. Cognizant has been open about it and is doing it brutally. With TCS, this may be more performance appraisal-related exits,”

As per TCS HR Head, they have hired more than 20,000 Americans in the last few years, and the numbers will only grow.

Experienced employees in India have to be alert, and on their toes, because it seems that TCS will impose strict performance-related metrics for them

And this may lead to more job loss for experienced employees.

We will keep you updated, as more details come in.

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