Bangalore: At a time when job losses are grabbing headlines, almost 5,000 employees of Tata Consultancy Services (TCS) have in fact left the company on their own. Last Friday during its quarterly results, the company announced that its annual attrition rate was at 11.5 percent.
The headcount of India's largest software exporter shrank despite a gross addition of staff. According to Hindustan Times, in the latest quarter TCS added a total of 2,828 employees with the total headcount of 1,43,761 at the start of the quarter. If the new hires are taken into consideration, the total employees strength should have reached 1,46,589 by the end of June. However, the firm's headcount was at 1,41,642 as of June 30, 2009, showing a net reduction of 4,947 employees.
A company spokesperson confirmed the staff decline but added that TCS's attrition levels were in line with the industry average. "Our attrition level has remained similar to what it was in the previous quarter. However, since we have controlled gross additions, the overall headcount has come down," said a TCS spokesperson.
The company is hiring fresh graduates as per need, but will honor the 24,885 campus offers it had made last financial year and those students would come on board only from the second quarter (July-September). "About 1,000 have joined this year and the rest would join in a phased manner throughout the year. We are also hiring overseas. For our newly opened Cincinnati campus, we are looking at hiring 250 people this year. For that we have made offers to 111 people from top universities, of which 99 have accepted and 38 already joined," the spokesperson said. Like its competitor Infosys, TCS decided to honor old commitments on campus recruitments while slowing down the hiring of new graduates. But lateral hiring of experienced staff is continuing, though on a low key.
It needs to be seen if these 5,000 employees have in fact quit voluntarily or were they forced to leave by the company.