Outsourcing demand fuels TCS to hire 60,000 moreDemand for Tata Consultancy Services (TCS)'s outsourcing services is increasing tremendously. The company has hired 70,000 workers during the last fiscal year and looking forward to add 60,000 more this year.
Tata Consultancy projects annual sales have quadrupled since 2005 to $8.4 billion. There are further expected to increase 20 percent this year. Being the rivals, Infosys Technologies and Wipro are also rushing to find large number of qualified candidates beacuse global IT purchases are growing by 7.1%.
TCS specializes in using low-cost IT workers to replace more expensive labour in developed countries. Due to this it succeeded in having contracts with Deutsche Bank, Hilton Worldwide and Air Liquide last fiscal year. TCS which is regarded as Asia's largest computer-services provider by market value reported record annual income of $2 billion.
TCS' vice-president for human resources said, "What we're trying to do is make sure the supply chain is large enough to meet our growth requirements in the future."
Since Microsoft and International Business Machines are going to open facilities in India, and the local banking, finance and manufacturing industries also are hiring their own computer engineers, TCS wants to keep the pipeline of talent filled. One can also see that attrition at TCS, Infosys and Wipro rose to its highest annual levels in the year.
There is rise in attrition over the last four quarters is essentially due to the pent-up demand. There is a race for hiring from each other.
It is expected that TCS will offer raises of 12% to 14%, which the highest in three years. Following the trend, Infosys is expected to raise salaries for domestic workers by 10 percent to 12 percent this fiscal year.
The International Monetary Fund said that our economy would grow by 8.2% this year after expanding 10.4% in the previous 12 months. India's software industry now employs about 2.5 million people and there is still a hiring spree in the IT companies.
Source: The Economic Times