TCS to recruit 40K freshers from campuses in FY22
India's biggest IT services company Tata Consultancy Services or TCS will be hiring over 40,000 freshers from campuses in India in the fiscal year 2021-22 according to areport published in MINT.
The firm, the largest employer in the private sector with a base of more than 5 lakh employees, had hired 40,000 graduates from campuses in 2020 and will do better on that number, the company's chief of global human resources Milind Lakkad said while speaking to reporters.
He added that the coronavirus pandemic-related restrictions do not pose any difficulties in hiring and added that last year, a total of 3.60 lakh freshers had appeared for an entrance test virtually.
"From the campus in India, we hired 40,000 last year. We will continue to hire and hire 40,000 or more this year in India," Lakkad said, adding that lateral hiring will also be "robust" this season.
Similarly, the company will also do better on the 2,000 trainees hired from American campuses last year, he said, without sharing an exact number.
Lakkad said a lot of planning goes into hiring from campuses and it is not 'just-in-time' hiring when a business deal gets signed up, and typically it takes over three months before a resource gets on a project, according to a PTI report.
The company's chief operating officer N Ganapathy Subramaniam said there is no dearth of talent supply in the country and also disagreed with concerns about its cost. He termed Indian talent as "phenomenal" given their skill sets and the work culture.
Its chief executive and managing director Rajesh Gopinathan said it often gets asked if the organisation is too large but added that the way it is structured makes it possible from a management and nimble-footedness perspective.
TCS has broken the organisation into small, autonomous entities with support from the top which helps take care of challenges, he said, pointing out that several entities like the railways, armed forces and political parties function with large pools of people.
Lakkad said the company expects the very low attrition of 8 per cent levels to go up once the situation normalises, adding that the normal levels are between 11-12%. Even if the attrition goes up, the company's operating model can ensure that the work or margins are not impacted, he added.
Its newly appointed chief financial officer Samir Seksaria said even though the company expects discretionary spending to normalise by the end of the fiscal, they are a small subset of its overall expenditure. There are other levers to compress costs as well, he said, stressing that structurally there are no deterrents to the aspired operating profit margin band of 26-28 per cent, which was missed in the first quarter.
Meanwhile, the employee headcount at TCS crossed the 500,000 mark in the June quarter, with a total workforce of 509,058 as of 30 June. TCS saw a net addition of 20,409, its highest quarterly net addition ever.