Tata Consultancy Services’ (TCS) headcount grew at the slowest pace in five years as easing demand prompted IT firms to go slow on hiring.
During FY23, TCS added 22,600 employees to its headcount, compared with over one lakh hirings in FY22 and over 40,000 hires one year earlier. TCS’s employee count rose by 7,775 or two percent in FY18, according to data compiled from Bloomberg, the second-lowest increase in headcount ever in the company’s history.
“In FY23, we focused on utilising the spare capacity built up in the prior year and recalibrated our hiring especially as attrition started falling in the second half of the year. Our last twelve-month (LTM) attrition in IT services for the year was 20.1 percent,” wrote Rajesh Gopinathan, the outgoing CEO and Managing Director, to shareholders.
In absolute terms, the largest growth in staff numbers occurred in FY22, while the highest percentage increase was in fiscal 2006. To be sure, the headcount in FY05 was fewer than 50,000.
“We are very comfortable with where we are with our net headcount. We hired significantly ahead of revenue growth in FY21 and balanced it with a more prudent hiring in FY22 or FY23. Going forward, we should be back to a more normal kind of hiring trend, while specific numbers will keep evolving,” Gopinathan said post Q3 results.
Both freshers and lateral hires continue to choose the company as their preferred employer in several major markets. Its workforce remains very diverse, with more than 150 nationalities represented and women making up 35.7% of the workforce.
Earlier in another development, TCS revealed that attrition among its female employees had surpassed that of men, hinting that the end of working from home could play a role in it.
Milind Lakkad, the company’s chief human resources officer, stated that attrition among women employees, who make up over 35% of the over 6 lakh-strong workforces, has been lower or comparable to that of men, and described the trend as “unusual.”
“…I would think working from home during the pandemic reset the domestic arrangements for some women, keeping them from returning to office even after everything normalised,” he said in an interview published in the company’s annual report.
Lakkad also said that the high attrition rate among women is a worrisome situation for the company’s efforts that promotes gender diversity. He said that the company is now focusing on reversing the trend.