TCS attrition rate continues to rise, but 'moderating'
Premium- TCS IT services attrition continued to climb during the fourth quarter, reaching 17.4%
While announcing its Q4FY22 earnings, IT giant Tata Consultancy Services (TCS) said that its IT services attrition continued to climb during the January-March 2022 period, reaching 17.4%. However, incremental attrition has ‘moderated’.
"The company’s philosophy of investing in people, and its progressive workplace policies have resulted in industry leading retention in an environment of increased churn," India's top IT company said in a statement.
Attrition rates have been high across IT companies through the last few quarters as demand for technology talent with digital skills continued to outstrip supply with increasing labor costs.
Meanwhile, TCS witnessed highest ever employee additions in a quarter. In Q4, TCS added 35,209 employees on a net basis, the highest ever net addition in a quarter. Employee headcount stood at 592,195, a net addition of 103,546 during the year, another all-time high.
The company said that its workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.6% of the workforce.
The IT giant's Q4 consolidated net profit rose over 7% to ₹9,926 crore as compared to ₹9,246 crore in the year-ago period, on the back of 16% rise in revenue from operations at ₹50,591 crore for the quarter ending March, 2022.
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“TCS Q4 results are largely in line with our expectations. The margins are slightly below expectations and a key reason could be a high attrition rate of 17.4%. We expect the attrition rate to stay elevated over the next year as the demand for software engineers is very robust. Overall, it is comforting to see that the global demand environment remains robust and TCS is continuing to deliver on its growth targets," said Abhay Agarwal, Founder, and Fund Manager, Piper Serica, SEBI Registered Portfolio Management Service Provider.
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