Tata Consultancy Services (TCS) added 4,258 employees on a net basis during the July-September quarter while onboarding 10,000 fresh graduates globally, signalling continued investment in talent despite a cautious technology spending environment.
The workforce update came alongside the company's second-quarter FY27 earnings announcement, where TCS indicated it would continue hiring based on business demand, particularly in emerging technology areas including artificial intelligence.
Speaking during the company's Q2 earnings conference on October 8, Sudeep Kunnumal, Chief HR Officer at TCS, said the company had onboarded 10,000 graduates from universities globally and was in the final stages of campus hiring for the next financial year.
Hiring momentum remains intact
The latest intake follows the addition of around 14,000 freshers in the first quarter, taking TCS' total campus hires during the first half of FY27 to approximately 24,000 graduates.
Earlier, the Mumbai-headquartered IT major had indicated it planned to hire a similar number of freshers as it did in FY26, when it recruited around 42,000 graduates. The company now says future hiring will be aligned with evolving business requirements.
"We are hiring to demand, and definitely we are seeing good demand in these new technologies. So, we will continue to hire to staff those positions," Kunnumal said during the earnings interaction.
Workforce grows as attrition eases
TCS reported steady improvement in workforce metrics during the quarter. Key workforce highlights from Q2 FY27:
- Net employee addition: 4,258
- Total workforce: 598,056 employees
- Freshers onboarded in Q2: 10,000
- Freshers onboarded in H1 FY27: 24,000
- IT services attrition: 13.3%
- Previous quarter attrition: 13.6%
The decline in attrition marks a sequential improvement and suggests greater workforce stability after several quarters of elevated employee movement across the technology sector.
Kunnumal said TCS continued investing in workforce development through upskilling and learning initiatives. According to the company, investments in learning and critical skills contributed to a 17% sequential increase in learning hours, reaching 17.1 million hours during the quarter.
AI demand shapes recruitment priorities
The company's hiring commentary reflects a broader shift across the technology industry, where employers are increasingly seeking specialised skills linked to artificial intelligence and next-generation digital technologies.
TCS indicated it is seeing strong demand in these areas and plans to continue recruiting talent required to support client engagements and project delivery.
The focus on AI talent comes as the company reported significant growth in its artificial intelligence business.
Technology and business indicators reported by TCS include:
- Annualised AI revenue: $3.1 billion
- AI contribution to overall revenue: More than 10%
- Total contract value (TCV): $9.6 billion
These figures suggest AI-related services are becoming a larger component of TCS' business mix.
Earnings show steady growth
Alongside workforce expansion, TCS reported moderate sequential growth in revenue and profit during the quarter.
The company posted net profit of ₹13,884 crore, up from ₹13,349 crore in the previous quarter. Excluding an exceptional legal settlement-related loss recorded in Q1, profit was marginally higher than the adjusted figure of ₹13,849 crore.
Revenue from operations rose 1.3% quarter-on-quarter to ₹73,188 crore, compared with ₹72,275 crore in the preceding quarter. On a yearly basis, revenue increased 11.2%.
Operating margin remained unchanged at 24% during the quarter.
