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Employees are leaving IT giants TCS, Infosys – here’s why

TCS mints almost ₹10,000 crore profit in just three months than in 12 months a decade ago

<ul><li>TCS announced that its employee attrition rate continued to rise during the January-March quarter as well, reaching 17.4%.</li><li>However, the company’s management said that the attrition rate is cooling off and may come down after a few quarters.</li><li>The IT major has hired over 1 lakh employees in FY22, taking the total count to almost 6 lakh people.</li></ul>The rate of employees leaving information technology (IT) firms continues to remain high as opportunities across the sector are growing with high digital acceptance across industries. <br /><br />However, the rise in attrition rate pushes such companies to hire more employees at competitive salaries, which eventually impacts their incomes. <br /><br />Today, Tata Consultancy Services (TCS) announced that its employee attrition rate continued to rise during the January-March quarter reaching 17.4%.<br /><div type="image" title="tcs attrition" height="900" width="1200" msid="90783459" hostid="261"></div>However, the company’s management said that the attrition rate is cooling off and may come down after a few quarters.<br /><br />“The reported attrition number of 17.4% will get worse for the next couple of quarters just because of the way LTM attrition is calculated. But what we are seeing is that on a month on month basis, we are starting to see flattening of it. So in absolute terms our attrition still went up this quarter compared to last quarter, but in percentage terms it has actually started to flatten and we think that the trend will continue into next quarter. So will [sic] have to wait and see, early days yet, but the curve is definitely flattening,” said Rajesh Gopinathan, chief executive officer (CEO) at TCS in a press conference for Q4 earnings release. <br /><br />The employee benefits expenses, which usually includes health insurance benefits, transport facilities, work from home policy and education assistance for retaining and hiring an employee grew by ₹15,740 crore in FY22 compared to the previous financial year. This shows a big hit on the firm’s expenses.<br /><br />The issue is not limited to TCS, but each IT firm in the industry as companies are hiring more employees with good hikes, promotions to mitigate those leaving the firm. <br /><br />On a brighter side, the IT major has hired over 1.03 lakh employees in FY22 with an army of almost 6 lakh people. TCS added 35,209 employees in the last three months. <br /><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-surge-over-5-times-in-2021-22/articleshow/90775731.cms">Electric two-wheeler sales surge over 5 times – Hero Electric, Okinawa corner half the market, Ather’s market share declines</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-power-and-tata-power-in-a-race-to-cross-1-lakh-crore-market-value/articleshow/90776914.cms">Adani Power and Tata Power in a race to cross ₹1 lakh crore market value</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/koo-founder-invites-elon-musk-after-he-turns-down-twitter-board-seat/articleshow/90780040.cms">Koo cofounder urges Elon Musk to work with Twitter’s rival in India</a>

TCS CEO expects more employees to leave the firm in the coming months, but he is not worried about it — Here is why

<ul><li>US-based IT services company <keyword id="28721" type="General" weightage="20" keywordseo="cognizant" source="Orion">Cognizant</keyword> reported a healthy growth in revenue and profit for the March quarter, beating analyst expectations.</li><li>However, it’s the attrition rates that is one of the key takeaways from the company’s earnings.</li><li>Cognizant reported a decline in attrition rates to 26% from 31% in the previous quarter, and this could be a sign of things to come for Indian IT giants struggling to retain their employees.</li></ul>Nasdaq-listed Cognizant’s March quarter net profit for March quarter grew 11.5% on year to $563 million along with 10.9% increase in constant currency revenue growth. The company follows a January to December accounting year.<br /><br />While Cognizant’s earnings beat analyst expectations, the company made a downward revision in its revenue guidance.<br /><br />Cognizant’s revenue guidance came down marginally as now it expects full year 2022 revenue to grow 9%-11% in constant currency terms as compared to 8.5%-11.5% guided earlier.<br /><br />On the bright side, its <keyword id="505875" type="General" weightage="20" keywordseo="attrition-rate" source="Orion">attrition rate</keyword> fell down to 26% from 31% in the previous quarter, and this could be a silver lining for Indian IT majors <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword>, <keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion">Infosys</keyword> and <keyword id="10862" type="General" weightage="20" keywordseo="wipro" source="Orion">Wipro</keyword>.<br /><br />“Thanks to our talented employees, we delivered on our first quarter commitments in what is an intensely competitive global labor market,” said Brian Humphries, chief executive officer in a quarterly release.<br /><br />“While the economic backdrop is uncertain, we remain optimistic about the demand outlook for our solutions,” he added.<br /><br />Despite the volatility in the employment situation in the US, Cognizant managed to bring down its attrition rates in the March quarter.<br />                    <div type="image" title="infosys, cog, tcs attrition" height="900" width="1200" msid="91334259" hostid="261"></div>“While we made sequential progress reducing voluntary attrition for the second consecutive quarter, we anticipate attrition will remain elevated for the full year and will increase in the second quarter, reflecting seasonality,” Humphries <a href="https://timesofindia.indiatimes.com/business/india-business/cognizant-reports-10-9-revenue-growth-trails-peers/articleshow/91332533.cms">reportedly</a> said in the earnings call.<br /><br />As the attrition rates came down, the company added less number of employees i.e 9,800 on a quarterly basis in Jan-Mar as against 12,200 in the previous quarter. <br /><br />On a yearly basis, Cognizant added 43,900 employees, which is way less than any of the Indian IT peers and less than half of that TCS hired in 12 months.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian IT peers<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Employee addition in FY22<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total employees as of March, 2022<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,03,000<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6 lakh <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,000<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.14 lakh<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">45,416<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.43 lakh<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cognizant<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">43,900 <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.40 lakh<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>    <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div><br /><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/second-day-to-subscribe-to-lic-ipo-post-poor-demand-on-day-1-and-gmp-falls-to-65/articleshow/91324706.cms">LIC IPO: Second day to subscribe to the issue post poor demand on Day 1; GMP falls to ₹65</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/reliance-jio-could-post-a-blockbuster-5000-crore-profit-in-the-march-quarter-say-analysts/articleshow/91316654.cms">Reliance Jio could post a blockbuster ₹5,000 crore profit in the March quarter, say analysts</a>

Cognizant’s latest earnings have a silver lining for Indian IT majors TCS, Infosys and Wipro

<ul><li>TCS, Infosys, Wipro are the top three information technology firms in the Indian market with over 11 lakh professionals working for the companies.</li><li>The entire IT sector has been witnessing a talent war with a high number of employees leaving the organisation for the last one year.</li><li>As a result, these firms have been hiring aggressively to make up for those leaving. Let’s see how much has changed in one fiscal year.</li></ul>For the last one year, the India’s as well as global information technology (IT) sector is going through a talent war to retain employees from leaving the organisations and spend millions on frequent promotions. <br /><br />While this has burnt a hole in the pocket of these technology firms, it has created tons of job opportunities for freshers graduating out of universities. <br /><br />Tata Consultancy Services (TCS), Infosys, Wipro are the top three information technology firms in the Indian market with over 11 lakh IT professionals working for the companies. <br /><br />Tata Group company TCS is the top IT firm in the industry with highest market capitalisation and biggest staff count.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top three IT firms <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hiring done in FY22 <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total no of employees<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Consultancy Services<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.03 lakh <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6 lakh <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,000<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.14<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">45,416<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.43<br /><br /></td></tr></tbody><tbody></tbody></table>The companies have been hiring aggressively to tame high employee attrition rate. Employee attrition rate is the measure of employees who have left voluntarily or involuntarily over a period of time.<br /><br />Rate of employees leaving the organisation is highest in Infosys, second highest at Wipro and then at TCS. <br /><br />The management at TCS feels that the attrition rate is <a href="https://www.businessinsider.in/tech/enterprise/news/techies-will-continue-to-leave-tcs-at-a-higher-rate-for-a-few-more-quarters-and-later-cool-off/articleshow/90783480.cms">cooling off </a>and may come down after a few quarters.<br />  <div type="image" title="tcs, infosys, wipro attrition rate" height="900" width="1200" msid="91184456" hostid="261"></div><br /><br /><strong>SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/wipro-to-double-fresher-intake-this-year-promotions-to-be-faster-as-employees-are-still-jumping-ship-in-hordes/articleshow/91181367.cms">Wipro to double fresher intake this year, promotions to be faster as employees are still jumping ship in hordes</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ahead-of-lic-ipo-paytm-money-opens-bids-of-up-to-5-lakh-through-upi/articleshow/91182034.cms">Ahead of LIC IPO, Paytm Money opens bids of up to ₹5 lakh through UPI</a><br /></strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/top-five-experts-to-learn-investing-in-us-stocks-from/articleshow/91182037.cms">Top five experts to learn investing in US stocks from</a><br />

TCS, Infosys, and Wipro hired 2.33 lakh employees in FY22 to tame high attrition

Talent from large IT firms has been flowing towards India's tech startups

<ul><li>The technology company’s consolidated profit after tax grew just 2.2% sequentially in October to December.</li><li>Shares of the company slipped nearly 4% on Wednesday as investors were disappointed with the marginal growth in profits.</li><li>Adding to it, more employees left <keyword id="43217" type="General" weightage="20" keywordseo="tech-mahindra" source="Orion">Tech Mahindra</keyword> than at <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword> and <keyword id="10862" type="General" weightage="20" keywordseo="wipro" source="Orion">Wipro</keyword> in an industry that is struggling with high attrition rate.</li></ul>Shares of information technology (IT) firm Tech Mahindra slumped nearly 4% on February 2 as investors sold stocks after the company delivered lower than expected profits. <br /><br />The company's net profit increased 2.2% sequentially to ₹1,369 crore in October to December as compared to expectation of ₹1,454 crore consensus estimate of analysts tracked by <a href="https://www.bloombergquint.com/business/tech-mahindra-q3-results-profit-rises-22-but-misses-estimates-attrition-inches-up">Bloomberg</a>.<br /><br />While revenue is in line with expectations, weaker than expected margins and slower hiring is a concern, says analysts <a href="https://twitter.com/CNBCTV18Live/status/1488700416942829568">reportedly</a> at UBS investment banking firm. It also maintained a ‘sell’ rating on the stock with a target price of ₹1,260 per share. <br /><br />Adding to it, more employees are leaving Tech Mahindra than TCS and Wipro in an industry that is struggling with a high attrition rate. However, Tech Mahindra is not the only firm struggling with high attrition, every other IT firm is getting more resignations than ever before. Infosys has the highest attrition rate in the industry.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT companies <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Attrition rate in Oct-Dec<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25.5%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">22.7%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.3%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>“We continue to strengthen our presence, deliver broad-based profitable growth and value for our customers, backed by future-ready talent and niche digital capabilities,” said CP Gurnani, managing director and chief executive officer at Tech Mahindra.<br /><br />Tech Mahindra’s total headcount has increased by 19% on a yearly basis to 1.45 lakh as on December quarter. <br />          <div type="image" title="tech mahindra" height="900" width="1200" msid="89291795" hostid="261"></div><br /><table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra Q3 results<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% growth QoQ<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% growth YoY<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue growth in dollar terms<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.1%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17.2%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit after tax <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.2%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.5%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br /><strong>SEE ALSO: </strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/budget-2022-nirmala-sitharaman-was-asked-these-10-questions-on-cryptocurrency-employment-inflation-in-india/slidelist/89280855.cms">India’s finance minister was asked these 10 questions and these were her answers</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/india-budgets-2022-for-a-trickle-down-as-slow-as-that-might-be/articleshow/89280984.cms">India budgets for a trickle down ⁠— as slow as that might be</a>

More employees are leaving Infosys, Tech Mahindra than TCS and Wipro

<ul><li>Indian IT services giant <keyword id="6357150" type="General" weightage="100" keywordseo="tcs" source="Orion">TCS</keyword> reported a subdued first quarter of FY23, with its profit missing analyst estimates.</li><li>The company also reported an increase in attrition rates and a slowdown in hiring, reflective of a challenging business environment.</li><li>It revealed that its headcount is now over 6 lakh, despite 1 in 5 employees quitting in the June quarter.</li></ul>India’s largest tech company TCS today saw the full impact of resignations, churn and the resultant salary hikes for the quarter — all of which shaved off its profit margins by 150 basis points. <br /><br />Even in this high cost regime, the company chose to add employees - with net additions touching 14,136 over the last quarter. And, it also crossed a milestone of 6 lakh employees – and its total headcount is now at 6,06,331. That means it added 155 new employees every day.<br /><br /><table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Quarter<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Attrition rate<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY22<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">8.6%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY22<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">11.9%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY22<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">15.3%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY22<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">17.4%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY23<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">19.7%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody></table><br /><em>Source: Company reports</em><br /><br />Last quarter, it added over 35,000 employees. This is also a reflection of the number of people who have been quitting, as its attrition rate hit the highest at 19.7% — that’s more than double of what it was in the same quarter last year. <br /><br />TCS admits that it’s a grave problem, but it will continue to ‘spend’ money to acquire talent. “We are making these investments to capture demand,” said Rajesh Gopinath, the CEO of TCS, at the earnings press conference. <br /><br /><cmsannotation type="cmsannotation" annotationid="Salary hikes in 5-8% range but top performers got better hikes" comment="subhead" text="Salary hikes in 5-8% range but top performers got better hikes"><span data-til="noop">Salary hikes in 5-8% range but top performers got better hikes</span></cmsannotation><br /><br />The company said its employees received salary hikes ranging between 5-8%, while top performers got even bigger hikes — without divulging details. <br /><br />Overall, TCS has set a target of hiring 40,000 freshers this year. This went down from the 1 lakh target it had set last year. However, the company said it is on track to achieve its FY23 fresher hiring target.<br /><br />TCS said that its workforce is diverse, comprising 153 nationalities and with women making up 35.5% of the base. It also claims to invest in organic talent development. <br /><br />“In the first quarter, TCSers clocked 12 million learning hours, resulting in the acquisition of 1.7 million competencies,” the company said in a press release. It also accelerated its ‘return to office’ programme in Q1, with about 20% of the workforce now working from the office. <br /><br />Tata Consultancy Services or TCS posted a 5% growth in net profits in the first quarter of FY23 at ₹9,478 crore; but its net profits fell by 5% on a quarterly basis – as it was hit by increased costs most of which was employee benefits. Its travel costs too ate into the profits even as its revenues grew by 16% on a yearly basis.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/retail/news/dmarts-growth-momentum-could-be-impacted-by-high-inflation/articleshow/92747965.cms">DMart has more stores and no disruptions like it wanted – and investors are excited</a><br /><br /><a href="https://www.businessinsider.in/india/news/not-just-crude-gold-silver-and-even-wheat-and-edible-oil-prices-are-going-down-in-india/articleshow/92748130.cms">It’s not just crude, gold, silver and even wheat and edible oil prices are going down</a><br /><br /></strong><a href="https://www.businessinsider.in/business/auto/news/why-investors-are-giving-mm-and-tata-motors-ev-businesses-the-same-value/articleshow/92742893.cms"><strong>Tata Motors sells 100x more EVs than M&amp;M – but both are valued at around $9 billion</strong></a><br />

TCS crosses the 6 lakh employee milestone even as 1 in 5 quit in the first quarter

<ul><li>Nasdaq-listed IT firm <keyword id="28721" type="General" weightage="20" keywordseo="cognizant" source="Orion">Cognizant</keyword> is going through a bad phase in terms of employees leaving the organisation.</li><li>The attrition rate of Cognizant is 33% much more than its Indian counterparts <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword> with 11.9%, <keyword id="6354512" type="General" weightage="20" keywordseo="infosys" source="Orion">Infosys</keyword> with 20.1%.</li><li>The IT giant added a record number of employees to fill the gap.</li></ul>The Indian information technology (IT) industry is reeling with a very high number of employees leaving the firms as the demand for digital services rises and so does the talent serving it. <br /><br />US-based Cognizant in its September quarter saw 33% attrition rate, which is far more than its Indian counterparts Tata Consultancy Services (TCS) with 11.9% and Infosys with 20.1%.<br />          <div type="image" title="cognizant attri" height="900" width="1200" msid="87327381" hostid="261"></div><br />As a result of the rising attrition rate, the company has brought in a number of employees onboard. It added 17,200 new employees in the September quarter taking the total headcount to 3.18 lakh.<br /><br />“While the industry faces an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and stayed focused on delivering against our client commitments and our strategic repositioning,” said Brian Humphries, chief executive officer at Cognizant.<br /><br />The issue is not limited to a few <keyword id="6357647" type="General" weightage="20" keywordseo="it-companies" source="Orion">IT companies</keyword> but across the industry and to mitigate the number of employees leaving the firm, companies are deploying measures like broad-based hikes, promotions and retention incentives.<br /><br />Meanwhile, the company reported a double digit revenue growth of 12% to $4.7 billion in the third quarter (July-September), 2021. <br />    <div type="image" title="cog rev" height="900" width="1200" msid="87328900" hostid="261"></div><br />Further, the company has guided for $18.6 billion revenue in FY2021. The company follows a January to December accounting year. <br /><br />Shares of most IT companies were trading a tad lower on Thursday morning.<br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT companies<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Share price change on October 28<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.14%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Technologies<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.2%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T Technology Services<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.19%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.18%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.4%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mindtree<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.12%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mphasis<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.36%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/nykaa-raises-2400-crore-from-174-anchor-investors/articleshow/87325004.cms">Nykaa raises nearly ₹2,400 crore in anchor investment from Government of Singapore, Goldman Sachs, JP Morgan and others</a><br /><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/nykaa-ipo-will-open-today-here-is-how-to-apply-via-bank-and-apps-like-zerodha-paytm-money/articleshow/87312035.cms">Nykaa IPO will open today — here is how to apply via bank and apps like Zerodha, Paytm Money</a>

Cognizant faces the worst attrition rate in the industry, hires record number of employees to fill the gap

Credit rating agency <keyword id="125045" type="General" weightage="50" keywordseo="fitch-ratings" source="Orion">Fitch Ratings</keyword> on Thursday said <keyword id="1417402" type="General" weightage="50" keywordseo="tata-consultancy-services-limited" source="Orion">Tata Consultancy Services Limited</keyword>'s (<keyword id="6357150" type="General" weightage="80" keywordseo="tcs" source="Orion">TCS</keyword>) revenue growth is likely to slow in the financial year ending March 2024 (FY24) amid the global economic slowdown, after strong 3QFY23 results.<br /><br />TCS reported 19 per cent year-on-year (yoy) revenue growth in 3QFY23 and 50bp quarter-on-quarter (qoq) expansion in the EBITDA margin, reflecting continued growth and the company's ability to pass on higher costs to customers, <keyword id="82981" type="General" weightage="100" keywordseo="fitch" source="Orion">Fitch</keyword> said.<br /><br />Fitch expects TCS's revenue growth to slow to 11 per cent - 12 per cent in FY24 (FY23F: 18 per cent), as Fitch's December 2022 <keyword id="503893" type="General" weightage="20" keywordseo="global-economic-outlook" source="Orion">Global Economic Outlook</keyword> forecasts US GDP growth to decline to 0.2 per cent in 2023 (2022F: 1.9 per cent) and eurozone GDP growth to decline to 0.2 per cent (2022F: 3.3 per cent), the rating agency said.<br /><br />"We expect a relatively short recession in the US in 2Q23 and 3Q23 but the recovery is unlikely to be rapid with GDP growth still subdued at 1.6 per cent in 2024. We forecast that the Eurozone qoq GDP growth will be negative in 1Q23 before turning positive in the second quarter," Fitch said.<br /><br />TCS received new orders worth $7.6 billion in 3QFY23 (3QFY22: $7.6 billion, 2QFY23: $8.1 billion). The book-to-bill ratio declined to 1.07x in 3QFY23 (3QFY22: 1.17x, historical average since 1QFY19: 1.24x), suggesting some signs of impending slowdown, the credit rating agency said.<br /><br />According to Fitch, its adjusted EBITDA of TCS is expected to remain stable yoy at 25 per cent - 26 per cent in FY24 (FY23F: 25 per cent, 3QFY23: 25.8 per cent) as easing cost pressures are offset by a weakening demand environment.<br /><br />"We expect employee attrition and wage pressures to subside as the global economy slows in 2023 even though TCS's last 12 months' employee attrition remained high at 21 per cent in 3QFY23 (FY19-21 average: 10 per cent), due to the continued shortage of skilled IT labour that led to the increased talent competition," Fitch said.<br /><br />Fitch also expects TCS to generate pre-dividend-free cash flow of Rs 465 billion in FY24 (FY23: Rs 390 billion), which is likely to be almost entirely distributed to shareholders via dividends and share buybacks.<br /><br />"We expect the company to continue to keep a net cash position of more than Rs 400 billion (FY22: Rs 440 billion). We do not expect the company to undertake any major M&amp;A," Fitch added.<br /><br />As regards the Indian information technology sector, Fitch's outlook is stable for 2023.<br /><br />"We expect Indian IT services companies' revenue growth to slightly exceed global competitors' in 2023 and 2024, as customers will most likely prefer lower-cost IT vendors amid an economic downturn," Fitch said.<br /><br /><strong>SEE ALSO:<br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/sun-mobility-aims-to-serve-10-lakh-vehicles-through-its-battery-swapping-platform-by-2025/articleshow/96932578.cms">Sun Mobility aims to serve 10 lakh vehicles through its battery swapping platform by 2025</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/global-pc-demand-sees-its-deepest-collapse-since-mid-90s-amid-recession-fears-gartner/articleshow/96932794.cms">Global PC demand sees its deepest collapse since mid-90s amid recession fears: Gartner</a></strong>

TCS revenue growth to slowdown in FY24: Fitch Ratings

<ul><li>Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro plan to open up lateral hiring further in the next three months. </li><li>In April to June, the attrition rate — number of employees that continue with the company — have dipped for all four of them. </li><li>Although hiring will not be done to replace them immediately, aside from freshers who already have promises to come onboard, Indian IT companies will be hiring laterally to meet deal requirements.</li></ul>Every major Indian IT tech company decided to go slow on hiring or suspended hiring altogether at end of the last quarter in March. However, despite these assertions, they have continued to bring on lateral hires.<br /><br />  <div type="Article" hostid="261" msid="77082427" title="Why TCS, Infosys, Wipro and HCL Tech can expect better earnings this year ⁠— here’s what’s working for each one of them" mstype="2" mssubtype="0"></div><br /><br /><table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Lateral hires<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5,000<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,000<br /><br /></td></tr></tbody></table><em>Source: Company earnings call</em><br /><br />One of the big reasons is attrition. Attrition rates present the speed at which employees are leaving the organisation. The lower the attrition rate, the fewer employees a company has been able to retain. <br /><br />    <div type="image" title="Attrition rates" msid="77046033" hostid="261" caption="&amp;lt;p&amp;gt;Attrition rates across TCS, Infosys, HCL Tech and Wipro for the last five quarters&amp;lt;/p&amp;gt;"></div><br /><strong>Lateral hiring continues driven by demand<br /></strong>Any freshers on-boarded before the pandemic will continue to come through albeit at a slower rate with training facilities caught in the coronavirus pandemic lurch. Meanwhile, offering any new freshers to come on board isn’t a part of the plan. <br /><br />    <div type="Article" hostid="261" msid="76995155" title="Infosys is still on the fence when it comes to making work from home a permanent change" mstype="2" mssubtype="0"></div><br />Instead, the companies are looking at lateral hires to fill the gaps where skill is needed to fulfil current deals and projects. Even at Wipro’s chief human resources officer (CHRO) Saurabh Govil claims that lateral hiring never stopped at the company. “We will continue to hire in Q2 based on demand.”<br /><br />“The downward trend in attrition continues. Expected to continue in the next quarter as well,” said HCL Technologies chief human resources officer (CHRO) Apparao VV. “Attrition has significantly come down but we will not be hiring significant numbers for immediate replacement,” he added.<br /><br />Tata Consultancy Services (TCS) didn’t hire in Q1FY21 but filled in over 4,500 positions by reskilling, cross-skilling and multiskilling the company’s existing employees. CEO Rajesh Gopinathan claims that learning intensity at the company has increased by nearly 25% between April to June.<br /><br />    <div type="Article" hostid="261" msid="76887172" title="TCS to kickstart lateral hiring and bring back 5% of its employees to offices" mstype="2" mssubtype="0"></div><br />The company is now revising its freeze on lateral hiring to meet the demand environment. “We decided to open up on the lateral hiring side and have started onboarding new associates into the TCS ecosystem,” said Gopinathan.<br /><br />Indian IT services companies — like Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies — has been launching new initiatives for their staff. Infosys, for instance, increased the variable pay for their staffers in the first quarter of 2020-21. TCS, on the other hand, rejigged their learning module to promote employees already within the organisation. <br /><br /><strong>SEE ALSO:<br /><a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-wipro-and-tech-mahindra-what-to-expect-from-earnings/articleshow/76865753.cms">TCS and Infosys to face least impact — Indian IT companies likely to report sharp decline in revenue during first quarter</a><br /><br /><a href="https://www.businessinsider.in/careers/news/infosys-work-from-home-not-permanent-says-coo-pravin-rao/articleshow/76995155.cms">Infosys is still on the fence when it comes to making work from home a permanent change</a><br /><br /><a href="https://www.businessinsider.in/business/corporates/news/h1-b-visa-impact-on-tcs-hcl-tech-infosys-wipro-and-cognizant-after-december-2020/articleshow/76681640.cms">Two ways the H1-B visa freeze could change things for TCS, HCL Tech, Infosys and other Indian IT companies</a></strong><br />

You Searched For "tcs attrition rate" and got 11 results

Employees are leaving IT giants TCS, Infosys – here’s why

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TCS mints almost ₹10,000 crore profit in just three months than in 12 months a decade ago

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TCS CEO expects more employees to leave the firm in the coming months, but he is not worried about it — Here is why

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Cognizant’s latest earnings have a silver lining for Indian IT majors TCS, Infosys and Wipro

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TCS, Infosys, and Wipro hired 2.33 lakh employees in FY22 to tame high attrition

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Talent from large IT firms has been flowing towards India's tech startups

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More employees are leaving Infosys, Tech Mahindra than TCS and Wipro

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TCS crosses the 6 lakh employee milestone even as 1 in 5 quit in the first quarter

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Cognizant faces the worst attrition rate in the industry, hires record number of employees to fill the gap

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TCS revenue growth to slowdown in FY24: Fitch Ratings

IANS

TCS, Infosys, HCL Tech and Wipro open up lateral hiring as more people walk out the door during the COVID-19 pandemic

Prabhjote Gill

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