TCS has nearly doubled its hiring plan for the year as attrition remains high
Oct 8, 2021, 20:57 IST
- Tata Consultancy Services hired 43,000 freshers in the first half of 2021, which is also the highest ever for a six-month period.
- TCS has declared a dividend of ₹7 a share.
- The IT services behemoth has reported 14.1% year-on-year growth in net profit to ₹9,625 crore for the September quarter.
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The information technology (IT) services giant Tata Consultancy Services (TCS) said on Friday that it has had the highest ever intake of freshers in a six-month period. TCS hired 43,000 freshers in the first half of 2021 and almost doubled its hiring target of FY22. It expects to hire another 35,000 in the next six months.
But this can also be seen as an after-effect of its attrition rates going up. The IT behemoth’s attrition has increased to 11.9% in July-September quarter from 8.60% in April-June period.
Nearly 12% attrition rate of TCS is high when compared to the average attrition rate of 8.67% in the IT industry for the September quarter as per a report by professional services firm Teamlease.
Although the company accepts the attrition rate is very concerning, it believes they can still manage it.
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TCS’s attrition rate has been rising consistently in the last five quarters:
Month | Attrition rate |
Jul-Sep | 8.9% |
Oct-Dec | 7.6% |
Jan-Mar | 7.2% |
Apr-Jun | 8% |
Jul-Sep | 11.9% |
The company posted a revenue growth of 3.2% quarter-on-quarter to ₹46,867 crore in the September quarter. Its profit for the quarter stood at ₹9,625 crore, higher by 6.8% quarter-on-quarter.While the company’s attrition rate remained a concern, the company reported strong numbers considering it had signed as many as 14 new deals in the last three months ending September.The company attributes this to the rising demand for digital transformation.
“The strong and sustained demand environment is a once-in-a-decade opportunity to position ourselves as the preferred growth and transformation partner for our customers,” said Rajesh Gopinathan, chief executive officer and managing director at TCS.
Vertical | Year-on-year growth |
Life sciences and healthcare | 19% |
Retail | 18.4% |
BFSI | 17% |
Manufacturing | 21.7% |
Technology and services | 14.8% |
Communication and media | 15.6% |
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