TCS Sets New Record in Attrition

Tata Consultancy Services (TCS) announced its second quarter results for FY23, reporting an 18 per cent on-year jump in revenue and an 8.4 per cent increase in net profit. 

One of the major highlights from the latest quarterly results was that the tech giant hired close to 119,000 freshers last year. Over 35,000 freshers were recruited via campus selection in the past two quarters, out of which, close to 20,000 were hired in the July-September quarter alone. 

TCS’s HR officer Milind Lakkad said that in the past six to nine months, they have invested in organic talent allotment of these people, coupled with some additions from the market. He said they are bringing all that talent to the product to make them potential talent. 

As mentioned in previous quarters, TCS is on track to hire 40,000 freshers. “We already hired 35,000 in the first two quarters, and now we will add another 12,000 in the coming year,” shared Lakkad, indicating that they might likely cross the 40K-mark. 

For the US and Europe, TCS said that hiring depends on demand. “We definitely do hire 2,000-2,500 trainees every year,” it added.  

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Read: TCS FY23 Q1 results – touches 6 lakh employees mark, attrition at all time high, and more

No sign of attrition dropping 

The attrition rate for TCS has almost doubled since last year and it looks like it is not coming down anytime soon. TCS witnessed a rise in attrition rate from 19.7 per cent in the previous quarter to 21.5 per cent in FY23 Q2. However, last year in the same quarter – i.e. FY22 Q2, attrition was about 11.9 per cent.

TCS chief Rajesh Gopinathan said they see a significant change in inventory. He said, “If you do pure math, even after four quarters, you will see a number that may not be very close to what we aspire for. But, it will come down significantly, say, 20%. But, it will take at least four quarters to get to that point,” he added, saying that the overall number of people coming down every quarter will reduce significantly.