Tech Mahindra Will Have Only 60% Indian Employees; Plans Massive Hiring In These Countries

Tech Mahindra will increase the pace of hiring for its delivery centres across eastern Europe and Latin America over the next few years.

In doing so, it aims to diversify its talent base and to tackle the talent war going on in India.

Proportions Of Workforce In India And Abroad

In a statement, the firm said that India will be home to only 60% of its talent base.

10% of hiring will take place in eastern Europe, 15% in Latin America and 15% in other countries in Asia.

It wants to widen its talent pool, “improve agility to deliver some solutions, and be closer to clients”, said CP Gurnani, chief executive and managing director.

Presently, the workforce of the company consists of 126,000 employees.

A common trend in IT services firms is having 80% or more of their employees in India.

International Presence

Over the last 5 years, near-shore delivery centres have gained popularity for all IT services companies.

Europe and South America, in particular, have gained importance owing to the bilingual skills of its employees.

This along with time zones mirroring that of the clients makes collaboration easier.

Tech Mahindra presently has development centres in 20 countries including Poland, Romania, Brazil, Mexico and Colombia.

Diversification: A Smart Decision

Industry experts say that the benefits of this strategy outweighs the costs.

They call the decision to diversify its workforce a prudent one along with providing near-shore options for its clients.

It also serves to reduce the risk of operations from the “increasingly intense Indian labor market and allows it to match one of its competitor’s advantages”, said Peter Bendor Samuel, CEO of Everest Group.

Going Back To The 90s

Gurnani compared the present talent war in India to the 90s when, in preparation for Y2K, Indian companies migrated abroad and vice versa.

He specified that in 1996, when Y2K preparedness started, Indian firms scouted internationally for talent. 

He said that he wishes to bring back that approach and make his company a “very active and strong focal point for talent development.”

While earlier the firm sought talent from South Africa and Australia, now it will expand the scope globally.

To Tackle Attrition

Diversification of hiring will also serve as a buffer against attrition which was at 17% for the quarter ended June 30.

The company has also introduced measures to contain attrition such as:

• Increments 
• Special bonus to all employees 
• A war chest to “use as and when required for retaining people” 
• Upskilling employees
• Redeploying in upskilled projects so employees benefit financially

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