Despite recording sound performance during the fourth quarter of FY24 ended March, Tata
Consultancy Services (TCS) witnessed fall in its headcount for the first time in last 19 years.
Data showed that since its listing, TCS always added employee count to man its operating,
matching its business growth. However, the company witnessed a fall in headcount by 1,759
people to take the total employee base to 601,546 at the end of March, 2024.
For FY24, total headcount declined by 13,249 employees on year-on-year basis. This was
revealed by the company on its post-earnings press conference on April 12, 2024.
Meanwhile, its attrition rate (employees leaving the organization) fell to 12.5% in Q4 of FY24,
from 13.1% reported in the previous quarter.
“The reduced attrition at 12.5%, enthusiastic response to our campus hiring, increased
customer visits, and employees returning to the office have resulted in great vibrancy in our
delivery centres and elevated morale of our associates,” Chief Human Resources Officer,
Milind Lakkad said in a press release.
The company also indicated that FY25 is likely to be better year in terms of hiring for TCS
than the previous fiscal year.
“We are already visiting engineering college campuses. There is a lot of buzz in campuses.
We are also in the process of conducting our National Qualifier Test for fresher recruitment,”
Lakkad said.
Though he didn’t provide any specific number but indicated that hiring would be at the similar
level like previous years.
Similarly, continuing the trend of giving salary increments in a tough demand environment,
the company announced that it would provide annual increments in the range of 4.5-7% with
double-digit hikes for top performers starting from April 1.
Experts in the know said that TCS will require more manpower in the coming quarters. The
IT firm reported a total contract value of $42.7 billion for FY24 and $13.2 billion for the
quarter ended March.
Most Indian IT firms have seen fall in headcount in the first three quarters of FY24 as
demand environment remained tepid. Given the bench strength (number of reserved
employees), these IT services companies tried to utilize their existing employee base and
increase their employee utilization levels.
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