TCS plans to hire 4,000-5,000 people

MUMBAI: Tata Consultancy Services (TCS), India's largest software company by

revenue, plans to hire 4,000-5,000 software professionals over the next year to

keep up with the work load, a company spokesman said. The increase - TCS hired

3,500-4,000 people last year - could allay concern about a decline in orders due

to the US economic slowdown. Many Indian software companies derive more than 60

per cent of their revenue from US orders.

Unlisted TCS, India's largest provider of software services to foreign

clients, is a division of the Tata group, one of India's largest industrial

groups. TCS currently employs over 15,000 software consultants and had revenue

of Rs 21.15 billion ($453.57 million) in 1999/00.

At least four Indian software companies have issued profit warnings in recent

weeks - NIIT, VisualSoft, Sierra Optima and KPIT Infosystems . And many analysts

expect most will be affected in some way in the next two quarters by the US

economic slowdown. However, there is a countervailing view that cost-cutting by

US firms could actually lead to an increase in outsourcing, thus boosting the

volume of orders received by Indian software service suppliers.

TCS may not present a representative picture of how the US economic slowdown

is likely to affect Indian companies since TCS' geographical client base is much

broader than most.

"In the last 3-5 years, we have grown very rapidly and unlike many other

software companies we have projects going in 80 countries in America, Europe and

Asia, including a lot of work in India," the TCS spokesman told Reuters.

TCS needs the additional personnel for work performed both within India and

overseas for foreign clients, he said.

(C) Reuters Limited 2001.