Tata Consultancy Services: Attrition remains high at 17.4% in Q4 at TCS : Rashtra News
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Attrition at Tata Consultancy Services (TCS) continued to remain high at 17.4% in the quarter ended March 31, 2022 — a rise of 210 basis points sequentially. However, the good news is that the incremental attrition has moderated, the company management said on Monday.
In the quarter ended December 2021, attrition at 15.3% was up 350 basis points from the preceding quarter.
Commenting on the high attrition, Rajesh Gopinathan, CEO and MD, TCS, said that by June the attrition should start to plateau out.
“What we are seeing is the lag effect of hiring that did not happen in the industry which is why so much of churn took place. Demand exploded even as the early stage supply was not fixed. As we get into this year, we are well into the hiring cycle, so the benefits of last year’s enhanced hiring will start reducing this incremental impact. Structurally, attrition will start tapering off a bit as we get in and supply from last year gets into the system. Hopefully by June we would have crest the peak of this cycle,” he said.
However, Gopinathan warned that the reported numbers will get worse before it gets better for the next couple of quarters because if the way LTM attrition is calculated.
“On a month-on-month basis we are starting to see flattening of attrition. On absolute terms, our attrition is still higher compared with previous quarter but in percentage terms it has started to flatten and that trend will continue into the next quarter. We have to wait and see, early days but the curve is definitely flat,” he said.
In the January-March 2022 period, TCS added 35,209 employees on a net basis, the highest-ever net addition in a quarter. Employee headcount stood at 592,195, a net addition of 103,546 during the year, another all-time high.
The company hired 100,000 freshers during the year, much above the guided 40,000 additions that it had guided in the beginning of the year.
For financial year 2022-2023, the company has also given a guidance of hiring 40,000 freshers. However, the number may move up or scaled down depending on the opportunities that the company sees.
N Ganapathy Subramaniam, chief operating officer and executive director, TCS, said: “We are going to maintain the momentum that we had last year. Since we have built the unique structure of NQT (National Qualifier Test), our approach is to go agile on it.
“Last year we had said we will be adding about 40,000 fresher hiring, we ended up substantially higher than that. We are again starting this year with a similar kind of a target, but knowing that we are going to be able to moving that up as we go in the year. Starting points similar to last year.”
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( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a www.financialexpress.com feed.)
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