TCS attrition rate rises to 19.7%; headcount crosses 600,000

Information Technology (IT) services firm Tata Consultancy Services’ (TCS) attrition rate rose to 19.7% in Q1FY23 on a last 12-month basis, and it was the highest in the last six quarters.

TCS’ workforce stood at 606,331 as of June 30, a net addition of 14,136 during the quarter. The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.5% of the base, the Bengaluru-based company said on Friday (July 8) while announcing financial results of Q1FY23.

Also read: Infy, TCS register record recruitment and attrition rates in FY 22

“The company gradually accelerated its return to office programme in Q1, with about 20% of the workforce now working from office. IT services attrition was 19.7% on the last twelve months’ basis,” the IT giant added.

TCS’ attrition rate was 8.6% in Q1FY22 and 11.9% in Q2. In Q3, it increased to 15.3% and 17.4% in Q4.

Milind Lakkad, TCS’ Chief HR Officer, said: “Our investment in strategic talent development initiatives and the linking of learning to career development have energized our workforce.”

Also read: All-time-high attrition proves biggest challenge for Indian IT firms

“Following our annual compensation review, employees received salary increases of 5 to 8%, 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,” Lakkad added.

Also read: Corporate India set to offer 9% salary hike to rein in attrition, says report

Rajesh Gopinathan, Chief Executive Officer and Managing Director of TCS, said, “We are starting the new fiscal year on a strong note, with all-round growth and strong deal wins across all our segments. Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties. Our new organization structure has settled in nicely, getting us closer to our clients and making us nimbler in a dynamic environment. Looking ahead, we remain confident in the resilience of technology spending and the secular tailwinds driving our growth.”

Also read: IT firms to see sharp revenue growth fall in FY23: Report