When do you see the company opening up hiring
Globally, we are still hiring 20,000 to 23,000 this year as compared to 35, 000 last year. Last year, we had 13,000 additional joining us from the Citi acquisition. So, at the end of the year, the net addition will be positive. This quarter, we had 65% freshers and 35% lateral hires and we expect this trend to continue. We will hire laterals only for niche clients. We didnt have any direct hiring and therefore, the overall number has gone down. Also, our utilisation for the quarter is at 71.3% (including trainees), so there is enough room to increase that in the coming quarters. We plan campus recruitment a year in advance and will start the process in January 2010 making offers only to final semester students.
Offshore business for TCS increased to 50.4% of total revenue this quarter up from 47.7% in the previous quarter. What is the overall strategy
We intend to move work offshore and we will keep on doing so because clients want it. This helps reduce client and employee costs. Onsite billing rates are more than those offshore so it is obvious that the topline of the company will get impacted. However, bottomline will be much better as margins in offshore business are much more than onsite business.
What is TCS perspective on global hiring requirements Do we hear more of protectionist noises
This quarter, we have hired about 450 people (gross) overseas. Of this, we have offered 111 students from the top schools in the US and have got confirmation from about 99 students. As far as protectionism is concerned, it is being talked about and debates over them have started across US and Europe. We will incorporate these (protectionist) policies in our strategy, but at this stage, everything is in air.
TCS is expected to increase its BPO headcount by 2,000 people this year. Will their training be similar to the IT services employees
IT services employees are trained for a six weeks, which was increased from three weeks. Training period for BPO employees would largely depend on the contracts, role the employee holds and domain s/he caters to. The BPO training is more of finance and accounting, human resources, life sciences and other domain specific areas. Training period could range from as less as one month to depending on the requirements of the process.
There would be no hikes for TCS employees this year. What about the variable component
The variable component remains the same - monthly and quarterly. During the last quarter, we had paid 95% of the expected payout.