Year 2014 has been a mixed year for India's largest software company with first half growth rates of 17 percent and cross currency headwinds ahead, TCS is now winding up the year having to battle rumors of layoffs within its massive work force of 300,000 plus.
There are no mass layoffs being planned at Tata Consultancy Services (TCS) - that's the firm and clear word coming from India's largest IT company as it denies reports of pink slips being handed out to a section of employees. Year 2014 has been a mixed year for India's largest software company with first half growth rates of 17 percent and cross currency headwinds ahead, TCS is now winding up the year having to battle rumors of layoffs within its massive work force of 300,000 plus. The company firmly denies reports which had claimed that a substantial number of employees will face the axe as part of a restructuring exercise. TCS has confirmed to CNBC-TV18 that it is on track to hire 55,000 employees in the coming financial year. According to a statement by the company, as a performance driven company, workforce optimisation is a continuous process which happens throughout the year taking into account employee performance, business needs, and people aspirations. This leads to some amount of involuntary attrition in the company. This is nothing out of the ordinary or a special situation for us to comment about. Sources say that like every year, 1-1.5 percent of the total work force, which works out to about 3,000 employees, have been asked to go as a part of involuntary attrition. TCS watchers point out that there is nothing unusual about these numbers as most of these terminations are linked to performance. Meanwhile, as it calms rumours around pink slips being handed out, TCS CEO N Chandrasekaran, has written a letter to employees highlighting the companies achievements in 2014, assuring them of continue growth. In the letter, Chandrasekharan says: “This has been another exceptional year for us in many ways. We continued to post industry leading growth rates and deepen our footprint in our key markets. Our businesses continued scaling in size and market prominence. Several of our business units which have crossed the USD 1 billion mark in annual revenues are now sizeable with revenues in multi-billions of dollars.” With big US banks looking at doing away with the practice of earmarking large annual IT budgets, 2015 may be a year that sees the Indian IT sector shift gears in the way it operates. While that may throw up its challenges, Chandrasekharan believes newer technologies, innovation and a more agile organisation structure will see the industry and his company through this transformation.
There are no mass layoffs being planned at Tata Consultancy Services (TCS) - that's the firm and clear word coming from India's largest IT company as it denies reports of pink slips being handed out to a section of employees. Year 2014 has been a mixed year for India's largest software company with first half growth rates of 17 percent and cross currency headwinds ahead, TCS is now winding up the year having to battle rumors of layoffs within its massive work force of 300,000 plus. The company firmly denies reports which had claimed that a substantial number of employees will face the axe as part of a restructuring exercise. TCS has confirmed to CNBC-TV18 that it is on track to hire 55,000 employees in the coming financial year. According to a statement by the company, as a performance driven company, workforce optimisation is a continuous process which happens throughout the year taking into account employee performance, business needs, and people aspirations. This leads to some amount of involuntary attrition in the company. This is nothing out of the ordinary or a special situation for us to comment about. Sources say that like every year, 1-1.5 percent of the total work force, which works out to about 3,000 employees, have been asked to go as a part of involuntary attrition. TCS watchers point out that there is nothing unusual about these numbers as most of these terminations are linked to performance. Meanwhile, as it calms rumours around pink slips being handed out, TCS CEO N Chandrasekaran, has written a letter to employees highlighting the companies achievements in 2014, assuring them of continue growth. In the letter, Chandrasekharan says: “This has been another exceptional year for us in many ways. We continued to post industry leading growth rates and deepen our footprint in our key markets. Our businesses continued scaling in size and market prominence. Several of our business units which have crossed the USD 1 billion mark in annual revenues are now sizeable with revenues in multi-billions of dollars.” With big US banks looking at doing away with the practice of earmarking large annual IT budgets, 2015 may be a year that sees the Indian IT sector shift gears in the way it operates. While that may throw up its challenges, Chandrasekharan believes newer technologies, innovation and a more agile organisation structure will see the industry and his company through this transformation.
No comments:
Post a Comment