Tata Consultancy Services to hire 55K employees this fiscal

Written by PTI | Mumbai | Updated: Apr 17 2014, 04:13am hrs
TCSTata Consultancy Services said it will hire 55,000 employees this fiscal, including 25,000 freshers. Reuters
Tata Consultancy Services (TCS) today said it will hire 55,000 employees this fiscal, including 25,000 freshers.

"We are planning to hire 55,000 this fiscal. We have already said that as far as campus hiring is concerned, it will be 25,000," TCS Executive Vice-President and Global Human Resources Head Ajoy Mukherjee told reporters here while announcing a 48.2 per cent rise in net income in the last quarter of the past fiscal.

TCS Managing Director and Chief Executive N Chandrasekaran said: "In the just-concluded FY 2014, the company had hired 61,200 as against a target of 50,000."

Its net addition of employees, after deducting the number of those who left the organisation, stood at 24,268 in FY 2014.

At the end of the fourth quarter, the total employee strength crossed the 3-lakh mark at 300,464, he added.

The employee utilisation level stood at 83.8 per cent, excluding trainees and 77.9 per cent after including trainees, as of March-end.

The attrition level stood at 11.3 per cent, while the same was 10.4 per cent at the core information technology vertical.

Mukherjee said offer letters for fresh recruits have already gone out and they will start joining from June 1.

On the staff increment front, Mukherjee said the company will give 14 per cent hike for the high achievers domestically, while the rest will get 10 per cent rise. Globally, the raise will be between 2-4 per cent in the developed markets and 4-6 per cent in developing markets.

"It has been a phenomenal year from our point of view and our employee point of view. Everybody will be happy with the increments which we are going to give," he said.

Chief Financial Officer Rajesh Gopinathan said higher wages will impact the operating margins, which climbed up to an all-time high of 29.1 per cent FY 2014, which will be visible in the first quarter of the current fiscal.

"Q1 is the quarter in which the wage hikes will impact the margins and then during the course of the year we will pretty much make this out through operational efficiencies," he said.

On the deal pricing front, especially in light of reports that its rivals are going aggressive, Chandrasekaran dismissed concerns, saying he expects it to be flattish to stable.

On the impact of rupee appreciation, TCS Chief Financial Officer Rajesh Gopinathan said even though the rupee has appreciated by over 10 per cent, the rally is not worrisome yet.

TCS hedges its entire chunk of receivables and there has not been any change in its hedging policies, he said, without giving its hedging level.

The number of clients in the over USD 100-million revenue potential category during FY14 increased to 24 from 17 a year ago.

On the employees front, the company raised its gross hiring target to 55,000 from the last year's 50,000 (it ended up hiring 61,200), while the utilisation including trainees stood at 77.9 per cent. The total number of employees crossed the 3-lakh-mark.

The city-headquartered company announced a wage hike of 10 per cent for the domestic employees and said that even though the margins may be impacted in the first quarter of FY 2015 due to the new hiring and wage hikes, better operational efficiencies will even it out during the course of the fiscal.

Meanwhile, the TCS board announced a dividend of Rs 0.29 for a redeemable preference share of Rs 1.