TCS promotes 1.1L employees, plans to hire 42,000 trainees
What's the story
Tata Consultancy Services (TCS) has announced promotions for over 1.1 lakh employees in FY25.
The move comes amid the company's decision to delay its regular annual increment cycle, which usually takes place in April.
Milind Lakkad, Executive Vice President and Chief Human Resources Officer at TCS, said these promotions are part of the company's strategy to manage growth and tackle attrition issues.
Recruitment plans
Plans to hire 42,000 trainees in FY26
Apart from the recent promotions, TCS is also looking to hire around 42,000 trainees in FY26. This number is in line with last year's intake.
TCS Chief Financial Officer Samir Seksaria had disclosed during an earnings conference that employee-related cost interventions were nearly 100 basis points due largely to promotions and merit-based advancements.
Strategic decisions
Strategic hiring and promotions amid market challenges
Despite some market analysts questioning the timing of these decisions, Lakkad defended them in an interview with The Times of India.
He highlighted that last year, TCS hired 40% digital hires against 17% the year before. "This is very strategic for us," he said.
Lakkad also highlighted a 13% attrition rate over four quarters and said promotions are an effective way to meet growth demands and fill attrition gaps.