Tata Consultancy Services said that by employing more than 150,000 campus graduates in the previous two fiscal years, it was able to avoid the “vicious” hiring frenzy. The company claimed to have implemented a 5-8% increase to support the upskilling demands of its staff as a result of AI-driven transitions.
“The supply side challenges of the last two years peaked in the first half of FY 2023, with employee churn reaching unprecedented levels. We broke out of the vicious cycle of hiring and counter-hiring within the industry by investing in onboarding an unprecedented number of fresh engineers – over 110,000 in FY 2022 and over 44,000 in FY 2023 – and training them on the technologies most in demand,” said CEO and MD Rajesh Gopinathan for FY22-23 in TCS’ annual report for last fiscal
The company also revealed that an average annual increase in salary in the country was in the range of 5-8%. It also said that if one counts promotions and compensation revisions, then the range is 6-9%.
“In FY 2023, we focused on utilizing 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,” Gopinathan said in the report.
TCS’s IT service attrition rate for the year was 20.1%. The net increase in FY 2023 was 22,600, and the ending headcount was 614,795.
Chairman N Chandrasekaran stressed the importance of upskilling in a world where it is seeing the transitions led by AI.
“The energy, supply chain and AI transitions are going to require companies to reskill/upskill existing talent base, hire and integrate new talent and invest in research,” said the chairman in the report.
Chandrasekaran noted that companies can tap into talent globally.
“Harnessing this talent will need an approach that leverages technologies like AI and cloud to enable effective employee engagement and collaboration,” he added.
Earlier, the company also announced that it will hold its 28th Annual General Meeting (AGM) on June 29 through video conferencing where the tech giant will announce its audited standalone financial statement for the FY 2023, confirm the payment of interim dividends on equity shares and declare a final dividend on equity shares for FY23.