India’s largest software exporter Tata Consultancy Services (TCS) has witnessed its lowest attrition rate in the last 27 quarters. The company’s attrition rate for the quarter ending June 30 stood at 10.5%.
TCS global head and vice president of human resources Ajoyendra Mukherjee cited growing business and opportunities for employees as reasons for retention. “As the business is growing, there are opportunities for people to engage across different projects and challenges. The overall culture at TCS helps people engage better here and hence the retention level is high,” he said. “We would like the level of attrition to come down further but it depends on multiple factors. Cyclically, the attrition rate in the first half of the year is higher and it is possible for the rate to go up in the next quarter,” Mukherjee said.
To tackle the visa rejection issue in the US, the company has started planning in advance. “This year, the total quota for visa applications that the authorities wanted was full within a week. Hence, you have to plan in advance,” he said.
“Last year, we had applied for 7,000 H1B visas and this year it will be slightly more than that,” Mukherjee said without divulging any specific numbers. “For L-1 visas, we are selecting candidates specific to the required skill.”
The company had announced earlier plans to hire 45,000 people for FY14, and has already given out offers to 25,000 freshers in India. TCS is likely to increase its hiring in the US this year. “We have hired over 500 people in US in the June quarter already,” Mukherjee said. TCS had hired close to 2,000 people in the US last year.
The firm is working on improving its employee utilisation rate. “We would like to operate in the 70-75% range for utilisation rate including trainees. But going forward more trainees will be joining in, so the rate may go down in the next quarter.” The 25,000 freshers that were given the offer letters have started joining from July 1.
Regarding the US Immigration Bill, the company is adopting a wait-and-watch policy. “The US Congress is in recess as of now and the discussions are likely to
begin in August,” Mukherjee said.
TCS on Thursday reported a net profit for the three months to June of R3,796 crore, an increase of 5.5% on a quarterly basis. The company’s net revenues stood at R17,987 crore, an increase of 9.5% sequentially. It showed volume growth of 6.1%. Ebit margins came in at 27%.