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After firing, TCS now wants freshers
By siliconindia
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Saturday, 19 July 2008, 01:15 IST
Bangalore: As their going is getting tougher with shrinking client base and tight margins, the software companies are resorting to fresh talent to reduce cost.
India's software firm TCS, which recently asked some of its employees to leave for faking their CVs, now plans to hire freshers on a large scale. Atleast 60 percent of the new entrants in 2009 will be fresh graduates, up from 40 percent last year.
"If we hire fresh engineering, management or even BSc and MSc graduates, the bottom of the pyramid enlarges and costs go down. A fresher costs you Rs 3.15 lakh a year, an experienced professional can cost you so much more," said Ajoyendra Mukherjee, Head, Global Human Resource Development.
In the first quarter results announced on Wednesday, though the company registered a consolidated profit after tax (PAT) of $322.65 million, a growth of seven percent on a year-on-year basis, TCS' cost for employees to the revenue was almost 55 percent. And the management needs to take control on this front to bring back shrinking margins on track.
Apart from hiring freshers, the company is cutting costs on travel and communication also in an attempt to support margins.
Two days back, siliconindia carried a news on TCS firing 20 employees. Here is the link to the story, which prompted a fiery debate among executives and techies across the country. https://www.siliconindia.com/shownews/43754