TCS Announces Employees Salary Hikes Amid Global Tech Layoffs
On the one hand, where giant tech companies are laying off globally, on the other hand TCS is not only hiring but also increasing its employees’ salaries.
As per chief human resources officer Milind Lakkad, Tata Consultancy Services (TCS), the largest IT services provider in India, would soon announce compensation increases for its staff that will be comparable to those from prior years.
This occurs at a time when tech corporations all across the world are using layoffs as a cost-cutting measure.
Lakkad added that TCS is not planning any layoffs because it thinks that once an individual is hired, talent should be developed for longer careers. According to a report by news agency PTI citing TCS’ CHRO, the top exporter of information technology services in the nation is also trying to acquire startup workers who have lost their jobs.
“We don’t do that (layoffs), we believe in grooming talent in the company… (there will be) no layoffs,” Lakkad said, adding that several companies are necessitated to take such a step because they hired more people than they wanted.
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In contrast, the “cautious” TCS thinks it is the responsibility of the company to make new employees productive and derive value.
He said that the corporation, which has over six lakh employees, would announce increases that would be comparable to those from previous years.
Lakkad stated that TCS will be looking to hire such affected personnel due to the large number of companies making layoffs, particularly in industries like education technology.
According to Lakkad, the company is specifically searching for individuals with skills in user experience design, artificial intelligence, a variety of cloud-related areas, and product experience.
When questioned by reporters if TCS would reconsider its stock option plans, considering that startups often hire people based on such offers, Lakkad responded that the company was still evaluating the matter because it believed both loyalty and performance were important factors.
In response to a query about whether the December quarter’s decrease of more than 2,000 employees in the total employment count was an exception, Lakkad declined to say if the March quarter will see an addition or a continuation of the decline.
He added that the company hired nearly 2 lakh individuals in the previous year, including 1.19 lakh trainees who are currently working on billable projects, and that the reduction was due to a slowdown in new recruitment.
According to Lakkad, the business does not anticipate “substantial gains” in net staff over the ensuing quarters because it is now capitalizing on prior investments.
According to Lakkad, this will result in an increase in overall utilization before it begins to decline when the roughly 40,000 trainees it anticipates hiring in FY24 begin to arrive.
According to Lakkad, the company is also willing to hire members of the Indian community in the US who have lost their employment with computer giants and may soon be required to return to India due to visa requirements.
Presently, 70% of its US employees are Americans, according to Lakkad, who added that the company would like to lower that percentage down to 50% because it also wants to provide its Indian employees with worldwide opportunities.
In the US, its largest market in terms of income, he added, there is a demand for faster appointments and approval for both commercial and H1 visas.
Lakkad stated that TCS is gathering data on employee moonlighting and is working to take action against prospective violators.
At the moment, roughly 40% of the personnel work from offices three times each week, while 60% come in twice per week, according to Lakkad.