The macroeconomic issues are having a significant impact on clients, who are cutting down on spending and delaying projects, according to press reports about the biggest IT service companies in India slowing down on recruiting.
TCS Outlook for Hiring This year
Following the release of the company’s earnings report for the second quarter (Q2) of the fiscal year 2024, Milind Lakkad, the chief human resources officer (CHRO) of Tata Consultancy Services (TCS), spoke with the media at such occasions.
He also explained TCS’s plans for campus hiring over the upcoming few quarters, outlining what new hires may anticipate from the company.
According to Milind Lakkad, the Tata Group’s flagship company heavily relies on university hiring.
It should be noted that campus hiring will continue over the upcoming quarters.
When asked if the 40,000 fresher intake goal that was earlier set will remain in place, he responded, “Campus hiring is a component of our fundamental strategy. We onboarded a sizable number of trainees in Q1, we did so in Q2, and we’ll keep doing it in the upcoming quarters.
“In general, we carry out that figure [40,000]. Because of the project pauses that are taking place, I don’t anticipate many adjustments, but there will be a few,” Lakkad noted.
He also mentioned that TCS anticipates attrition rates between 11% and 14%.
It appears that TCS’s net workforce decreased by 6,333 in Q2 of FY24.
In recent quarters, the bellwether IT sector has shifted its emphasis from hiring to keeping talent.
Importantly, it is now focusing on optimizing the use of human resources.
It won’t be overstating things to say that the past few months have been difficult for information technology (IT) enterprises because of the difficult environment for technology services and the geopolitical unrest in Europe and West Asia.
The other IT companies, including its rival Infosys, have already declared that they won’t be hiring from universities this year.
According to a recent media article, the slowdown in hiring is also expected to have a substantial impact on IT freshmen.