Tata Consultancy Services (TCS) saw its profits go up by 12.2% for Q3 FY22, with the company announcing that it has hit revenue of $25 billion for calendar year 2021. This is also the strongest growth that the company has seen in Q3 in the last five years, and saw revenue grow by 16.3% year-on-year. All verticals saw double digit growth, the company said.
“Momentum for cloud adoption has continued unabated with customers embarking on multi-horizon cloud transformation journeys. The company is seeing clear evidence of outperformance by our hyper scaler business units,” TCS said in its statement.
TCS also said it crossed a milestone of more than 2 lakh women employees, with a headcount of 200,271 women employees being women at the end of December 31, 2021. “This means almost 36% of the workforce are women; Our approach has been to build leadership from within and we’re happy to report that we’re closer to the halfway mark with 44% women associates among the junior cadre,” TCS said in a statement. It also said that the number of senior women executives in the company has gone up by 68% in the last five years.
Attrition in Q3 was significantly lower than Infosys and Wipro, both who also announced their results on Wednesday, January 12. Attrition came in at 15.3% for TCS, with the company also saying that it is seeing signs of attrition bottoming out. The company saw net additions of 28,238, which it said is its highest-ever added till date, and its total headcount stands at 5,55,986. In FY22, TCS said that 1.1 lakh promotions have been handed out so far, and 40,000 more will be given out in Q4FY22. Further, 32.3% of open positions were fulfilled through up-skilling/cross-skilling, TCS said.
In terms of fresher hiring, TCS said it hired 43,000 freshers in the first half of the fiscal year, hired 34,000 freshers in Q3 alone (which was its target for the second half of the fiscal year) and expects to hire more freshers in Q4.
Milind Lakkad, the company’s Chief HR officer, said, “In addition to the 43,000 freshers we hired in H1, we onboarded 34,000 fresh graduates in Q3 – which is higher than our full year fresher hiring numbers in prior years. On the talent retention side, we continue to be the industry benchmark. By continuing to invest in our people, giving preference to internal candidates for the most exciting open positions, providing global deployment opportunities, fast track career paths linked to learning, and promotions to over 110,000 employees, we have been able to retain our best talent and overcome supply side challenges.
TCS has committed to a 25/25 model a while ago — where only 25% of the workforce works out of the office at a given time, and employees don’t have to spend more than 25% of their time in office, which will happen by 2025. He said that the second tier of leadership has been going to office, and have the flexibility to choose when they choose to work from home or work from office.
“The intent is to really see how they would like to operationalise the 25/25 operating model. Business continuity plans and the 25/25 model — these two will be rolled or will be defined at a client and a project level. That will constitute how people will come and return to office, where and how they will work, etc,” he said.
In terms of growth, it was led by retail at 20.4% year-on-year, BFSI at 17.9%, manufacturing at 18.3%, Technology Business Unit at 17.7%, Life sciences & healthcare at 16.3% and CMO grew 14.4%.