Software giant Tata Consultancy Services (TCS) — kicking off the corporate earnings season — said its attrition rate further rose to 19.7 percent in the April to June quarter of the 2022-2023 financial year
In the previous quarter, TCS saw an attrition rate of 17.4 percent. This comes at a time when elevated employee costs continue to impact profitability in the IT sector even as there is a healthy demand for technology across sectors.
Around this time last year, TCS said its global headcount crossed the 5 lakh-mark. With the addition of 14,136 employees in the reporting quarter, the company's total workforce stands at 6,06,331, TCS said in its quarterly earnings report. Women account for 35.5 percent of TCS workforce, the firm said.
Milind Lakkad, Chief HR Officer, said, following the annual compensation review, TCS employees received salary increases of 5 to 8 percent with top performers getting even bigger hikes.
"Our empowering, performance-driven work culture is helping us attract local talent across all our key markets. Continued hiring momentum resulted in a milestone quarter, with the employee strength crossing the 600,000 mark,” he added.
In the April to June 2022 period, TCS' net profit declined 4.5 percent compared to the previous quarter as employee costs and high attrition continued to eat into its margin despite high demand.
The company reported a revenue of Rs 52,758 crore for the three-month period — up 4.3 percent on a quarter-on-quarter basis.
