In a demanding economic environment marked by a conservative stance on new hires, Tata Consultancy Services (TCS), has reiterated its dedication to bringing in young talent. While some IT companies, like Infosys, have made it clear that they won't be recruiting students, TCS's COO, N Ganapathy Subramaniam, affirmed the company's intention to onboard a substantial number of recent graduates during the current fiscal year, with plans to hire approximately 40,000 freshers.
Additionally, Subramaniam stressed that the company does not have any intentions of implementing extensive layoffs, reported India Today. While TCS is committed to its recruitment of recent graduates, some of its counterparts in the IT industry are proceeding with caution regarding campus hiring. Infosys, as an example, holds a different viewpoint.
During a recent earnings call, Infosys CFO Nilanjan Roy disclosed that the company had brought in 50,000 freshers during the previous year and would refrain from campus recruitment until demand conditions exhibit improvement.
According to the same report, Subramaniam did not completely discard the idea of hiring experienced professionals from outside the organiation. However, he made it clear that TCS's hiring decisions would be closely aligned with the demand projection for discretionary expenditures. The company has adopted a strategic recruitment approach, which it adjusts in accordance with the prevailing market conditions.
"When there is a contraction in discretionary spending, we hire a lesser number of laterals. In the last 12 to 14 months, we saw a huge attrition. We didn't know how long that would continue, so we ended up hiring a lot more than what we needed to build a bench,” he elaborated. Currently, TCS's utilisation rate is at approximately 85 per cent, which represents a slight decrease from the previous range of 87-90 per cent.
Subramaniam stressed that TCS is well-prepared to handle any upswing in demand, citing the substantial bench strength the company possesses. According to a report in TOI, approximately 10 per cent of TCS's extensive workforce, totalling around 60,000 individuals out of 600,000, is ready for deployment, having acquired the necessary training and skills over the past year.
In contrast, Infosys has adopted a different approach. The company has announced its decision not to engage in campus hiring for fresh graduates this year. Infosys has justified this decision by pointing to its existing "significant fresher bench" and a decline in demand in crucial markets, particularly in the United States.