Tata Consultancy Services (TCS), the country’s largest IT services company, on Wednesday reported a decline in its attrition rate during the June 2023 quarter (Q1 FY24) to 17.8 per cent for the last 12 months. TCS has also rolled out its annual salary increase across its workforce, with effect from April 1, 2023, TCS said in a BSE filing on Wednesday.
TCS’ total workforce stood at 6,15,318 as on June 30, 2023, a net addition of 523 during the quarter, according to the filing. It shows a 90 per cent plunge. The company has given a 12-15 per cent hike for exceptional performers in its latest annual compensation review and also commenced the promotions cycle.
The company’s attrition rate had stood at 20.9 per cent in the previous quarter ended March 2023, which was also lower than its previous quarter. Before coming to its current downward trajectory, TCS’ attrition touched as high as 28.4 per cent in Q1FY23. It then slipped to 27.1 per cent in Q2FY23 on a trailing twelve-month basis.
“The (TCS) workforce continues to be very diverse, comprising 154 nationalities and with women making up 35.8 per cent of the base. The company rolled out its annual salary increase across its workforce, with effect from April 1, 2023. Its investment in upskilling its workforce continues apace. Year till date, 1,03,000 employees were trained in high-demand competencies and collectively, TCSers clocked 12.7 million learning hours, and acquired 1.3 million competencies,” TCS said in the latest filing.
TCS on Wednesday reported a consolidated net profit of Rs 11,074 crore for the June 2023 quarter, which is 16.8 per cent higher year-on-year.
The company said its IT services attrition dipped further in Q1 and was at 17.8 per cent for the last twelve months.
Milind Lakkad, Chief HR Officer, said, “We remain focused on developing, retaining and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to office to foster our culture.
Our Return to Office initiative is picking pace, with 55 per cent of the workforce already in office thrice a week.”
The company has given a 12-15 per cent raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle. TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market relevant skills like generative AI, cloud, data and analytics.
“Our attrition continues to trend down and we expect it to be back in our industry-leading, long term range in the second half of the year. While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year,” Lakkad said.
Samir Seksaria, chief financial officer of TCS, said, “We have gone ahead and rolled out our annual salary increase with effect from April 1. Our operating margin of 23.2 per cent reflects the 200-bps impact of this hike, offset through improved efficiencies.”
He added that at the same time, the company continues to make the investments needed to power its future growth, including expansion of its delivery and research infrastructure.
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