TCS Not Considering Layoffs, Hiring Impacted Employees From Start-Ups | TCS News Update
- TCS will not fire any employee.
- The company’s Head of HR confirmed that TCS will instead give a raise to its workforce.
- The Indian IT giant is also planning to hire impacted employees from startups.
While all the international tech giants like Google, Meta, Twitter, and Amazon are firing employees amid macroeconomic conditions, India’s largest information technology services exporter, Tata Consultancy Services (TCS) has confirmed that it will not fire any employees. A higher official from TCS has assured that the company is ‘not considering any layoffs’, instead, it will be giving raises to its employees and will also hire impacted professionals from startups.
“We believe in grooming talent in the companyâ€¦there will be no layoffs. Once a staff member joins, it is our responsibility to make them productive, and derive value,” said chief Human Resources officer Milind Lakkad told PTI in an interview. He added that TCS believes in grooming talent for longer careers once it hires an employee.
Commenting on the ongoing layoffs by big companies, Lakkad further said that the other IT companies were forced to cut down on their workforce as they hired ‘more people than required.’ However, as for TCS, Lakkad revealed that the company has been ‘cautious’ in its approach.
The statement from TCS was also much awaited as almost all the tech companies are currently going through a layoff spree. Companies are eliminating the workforce as part of cost-cutting and taking serious measures to boost revenue and profit margin. And in India, where TCS is an employer of over 600,000 employees, the announcement related to future planning of the company was much awaited. Especially related to layoffs, as many employees were in fear of whether their job will remain secure or not.
Commenting on the same speculation around layoffs as TCS, Chief HR Lakkad gave a sigh of relief to everyone. As for the coming planning, he further revealed that TCS staff members will, in fact, receive salary hikes similar to the ones in the previous years. So the employees don’t even have to worry about any changes in salary structure. Additionally, TCS will be hiring more employees, especially the impacted employees from startups. ‘Like to hire such impacted workers,’ Lakkad said, stating that the company is interested in hiring professionals specifically who have experience in design, artificial intelligence (AI), cloud aspects, and product experience.
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“It is a very large canvas, we are doing exciting work across different industries in different technologies. I think all of that requires some phenomenal talent to come in and participate. We are getting it obviously from startups, people who have actually done some good work in those companies and have short-term career challenges,” said the HR head.
Lakkad further revealed that TCS has also employed more professionals in the past year. In the total workforce of more than 6 lakh employees, more than 2 lahks (including 1.1 lakh trainees) were hired in the past year.
As for the other IT companies in the international cocoon, the spike of layoffs is still not over. Many companies are still considering and announcing layoffs due to underestimating the economic downturn and are preferring layoffs as a part of cost-cutting. “Over the past two years, we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today,” Alphabet CEO Sundar Pichai said in a blog post.
Tata Consultancy Services (TCS) is not considering any layoffs as it believes in grooming talent for longer careers once it hires an employee, a top official has said.
The country’s largest information technology services exporter is also looking to hire start-up employees who have lost their jobs, its chief Human Resources officer Milind Lakkad told PTI in an interview.
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The comments have come amid IT companies, including big tech giants, the world over laying off people due to a slew of reasons.
“We don’t do that (layoffs), we believe in grooming talent in the company…(there will be) no layoffs,” Lakkad said, replying to a specific question on whether there will be layoffs or involuntary attrition.
He said many companies are forced to take such a step because they hired more than they wanted while the “cautious” TCS believes that once a staff member joins, it is the company’s responsibility to make them productive and derive value.
In cases where it finds a gap between the skill sets required and what an employee possesses, it focuses on training the employee by giving her more time, Lakkad added.
He said the company, which employs over 6 lakh people, will be announcing hikes which will be similar to earlier years.
With a slew of start-ups laying off people, especially in sectors like education technology, Lakkad said TCS will be looking to hire such impacted workers.
“It is a very large canvas, we are doing exciting work across different industries in different technologies. I think all of that requires some phenomenal talent to come in and participate. we are getting it obviously from startups, people who have actually done some good work in those companies and have short-term career challenges,” he said.
Specifically, it is looking for talent in user experience design, artificial intelligence, many aspects of cloud and having product experience, Lakkad said.
When asked if TCS will be reviewing its stock options schemes, given that start-ups attract a lot of talent based on such offers, Lakkad said it is continuing to evaluate on this aspect as it feels that both loyalty and performance play a significant role.
To a question on whether the decline of over 2,000 staffers in overall employee count in the December quarter was a one-off, Lakkad declined to specify if the March quarter will have an addition or continue with a decline.
He explained that over the last year, it has hired over 2 lakh people including 1.19 lakh trainees, who are still getting into billable projects and hence, the slowdown in new hires resulted in the decline.
Over the next few quarters, the company does not see “significant additions” from a net employees standpoint, Lakkad said, pointing out that it is leveraging its past investments now.
This will lead to an increase in the overall utilisation number, before it starts going down as the over 40,000 trainees it expects to hire in FY24 start coming in, Lakkad said.
The company is also open to hiring people of Indian diaspora in the US who have lost their jobs with the tech majors and May be on the brink of being forced to return home as per their visa conditions, Lakkad said.
At present, 70 per cent of its US employees are Americans, Lakkad said, adding that it would like to get the number down to 50 per cent because it also wants to offer global opportunities to its staff in India.
He also said that there is a need for quicker appointments and clearance for both business and H1 visas in the US, its largest market by revenue.
On moonlighting by employees, Lakkad said action against potential violators is work in progress at TCS and it is accumulating data on the same.
At present, close to 40 per cent of the staff work from offices three times a week and 60 per cent come two times a week, Lakkad said.
“I expect these numbers (of those working from offices) to increase. By Q1 (FY24) it will significantly go up. by Q2 of FY24, we will decide the way forward,” he added.
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