TCS to hike wages by 12-14 percent; to hire 60,000 in FY'12
Friday, 22 April 2011, 05:41 IST   |    2 Comments
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TCS to hike wages by 12-14 percent; to hire 60,000 in FY'12
Mumbai: The country's largest software services firm Tata Consultancy Services (TCS) said it will give pay hikes to the tune of 12-14 percent to its employees in the country even as the industry grapples with high attrition rates. "About 12-14 per cent is the increment that we have decided for offshore, that is India. And as far as locations overseas are concerned, in the major markets, we are going to give 2-4 per cent," TCS Global Human Resources Head Ajoy Mukherjee told reporters here. In emerging markets, it will be between 2-10 per cent, he said adding that the broad range was on account of variation in countries. Attrition has been a cause of concern with IT firms due to lack of skilled manpower. The industry's attrition rate is hovering around 18-22 per cent, according to industry analysts. The company also plans to hire about 60,000 people in the ongoing financial year. "Overall, we will be hiring close to 60,000 in the next financial year...it will be spread equally between lateral and fresh hires," Mukherjee said. In FY2009-10, TCS had hired about 69,000 professionals. "Last year, we did about 69,000 plus. This year we have given offers to 37,000 people. In addition, the hiring we did in Q4 -- around 19,000, including 9,000 trainees who are being trained at this point in time," Mukherjee said. From the overall growth plan we have done, we have sufficient number of people to deliver the projects, he added. Asked if there was a cut in hiring numbers, TCS CEO and MD N Chandrasekaran said, "The people we hired in FY'11 is partly for last year (FY'11) and partly for next year (FY'12). So, for next year's growth plan, part of it is already hired and the balance will arrive next year." TCS' total headcount stood at 1,98,614 at the end of March 2011. TCS added a net 11,700 employees during Q4 FY'11 and had an attrition rate of 14.4 per cent (on last 12 months basis). The company today said wage hikes and currency movements posed headwinds for growth. "The headwinds have been there as far as currency markets are concerned. The main concerns for margins going forward are wage hikes and currency fluctuations," Chandrasekaran said. TCS reported 31.1 per cent jump in consolidated net profit at Rs 2,623 crore for the January-March period of 2010-11. The company's shares closed at Rs 1,191.65 a piece, down 2.23 per cent, on BSE.
Source: PTI