Mumbai, Oct. 16: Tata Consultancy Services (TCS) plans to hire 50,000 employees this year, substantially higher than its original estimate of 45,000.
The move to raise the number of hires comes on the back of the strong second-quarter results that the country’s largest software exporter announced yesterday.
During the second quarter of this year, the company added 17,362 employees. Of this, while around 6,300 were trainees, 6,423 were lateral hires in India.
Ajoy Mukherjee, executive vice-president and global head of human resources at TCS, said today the company had decided to raise the hiring target by 5,000 but hadn’t yet determined whether they should come from campuses or through lateral recruitment.
He said TCS would also make 25,000 fresh campus offers next year. The company aims to visit at least 350 schools next year.
During the second quarter, 4,643 employees were added overseas with the company steadily increasing its hiring in the US. On a quarterly basis, TCS has been adding around 600 employees in the US.
Mukherjee said as a result of its efforts to continuously invest in talent development, it was successful in setting industry benchmarks in employee retention.
During the period ended September 30, attrition at TCS was stable at 10.9 per cent compared with 10.52 per cent in the preceding quarter.
According to Mukherjee, attrition rates are generally higher in the first two quarters than in the second half of the year.
TCS is also looking to improve the utilisation rates of its employees. During the second quarter, the utilisation rate (including trainees) stood at 75 per cent, higher than 72.49 per cent in the first quarter.
TCS is one of the very few IT companies that is hiring aggressively from campuses.
At a press conference after unveiling the second-quarter result, N. Chandrasekaran, chief executive officer and managing director, projected an optimistic road ahead. He said discretionary spending had been good and TCS was expecting a strong deal pipeline ahead.
The company reported a net profit of Rs 4,701.8 crore-that marked a growth of nearly 34 per cent over Rs 3,512.3 crore in the same period of last year.
The key elements of this performance were the operating margins that rose to an all-time high of 30.2 per cent and were linked to a robust 7.3 per cent volume growth (number of man hours billed).