TCS headcount shrinks as nearly 5,000 leave firm
In the aftermath of a year that saw business hit hard by the US financial meltdown, Tata Consultancy Services (TCS), the nation’s largest software exporter, saw its headcount shrink despite a gross addition to staff as nearly 5,000 employees, reports Ruchi Hajela.business Updated: Jul 21, 2009 21:57 IST
In the aftermath of a year that saw business hit hard by the US financial meltdown, Tata Consultancy Services (TCS), the nation’s largest software exporter, saw its headcount shrink despite a gross addition to staff as nearly 5,000 employees left the company the April-June quarter.
The company told analysts in a presentation after its quarterly results announced last Friday that its annual attrition rate was 11.5 per cent.
TCS added a total of 2,828 employees during the period in the latest quarter.
At the start of the quarter, the staff totalled 1,43,761. Including the new hires, the count should have gone to 1,46,589 by end-June. However, the company’s employee base stood at 1,41,642 as of June 30, 2009, showing a net depletion of 4,947 employees.
A company spokesperson confirmed the staff decline but added that TCS’s attrition levels were in line with the industry average.
“Our attrition level has remained similar to what it was in the previous quarter. However, since we have controlled gross additions, the overall headcount has come down,” said a TCS spokesperson.
The spokesperson added that the company was hiring fresh graduates as per need but will honour the 24,885 campus offers it had made last financial year and that students would come on board from second quarter (July-September) onwards.
Like its industry peer Infosys, TCS decided to honour old commitments on campus recruitments while applying the brakes on hiring new graduates. But lateral hiring of experienced staff is continuing, though on a low key.