TCS to hire 40,000 for FY2011

MUMBAI, INDIA: Tata Consultancy Services (TCS) Ltd., the top IT services and business solutions and outsourcing firm has revised its hiring target for the financial year 2011.

The BSE and NSE-listed company announced a rise in its hiring target to 40,000, which is an addition of 10,000 staffs to the previous mark of 30,000.

“We have decided to increase the hiring target for FY2011 to 40,000 - an increase of 10,000 from the previous estimate due to the strong deal momentum and continuing ramp ups. We continue to focus on retention by providing an enriching employee experience,” said Ajoy Mukherjee, TCS vice president and head of Global Human Resource.

However, the company reported an overall 13.1 per cent attrition for the first quarter ended on June 30, 2010 and 1.3 per cent rise as against the attrition during previous quarter.

Company’s IT services division marked 12.3 per cent attrition rate, while the BPO segment saw 20 per cent attrition. Moreover, its utilization rate was 82.6 per cent (excluding trainees) and 74.8 per cent (including trainees) for the Q1.

“Usually the attrition will be higher in the first quarter. However for us, increments and promotions play key role in retaining people,” commented Mukherjee.

According to N Chandra, TCS CEO and managing director, the company’s strategic focus is on retention of talent.

He added that their attrition rate has gone up slightly during this quarter, however retention is very critical for them. 

Commenting on the wage hikes for the staffs, Chandra said, “ We have given additional variable pays whenever we have performed well and the  employment focus is very high.”

In India, the company offered 10 per cent average wage hike.

In the emerging markets it was 2.8 per cent, while other markets saw a 2.4 per cent wage hike.

During the ended first quarter, TCS total staff strength was 1,63,700 out of which foreign nationals consisted of 7.2 per cent and women 31 per cent.