With 40,000, TCS is one of US’s biggest job creators
- When TCS’s employee strength was 3.18 lakh, Amsterdam-based The Top Employer Institute had said TCS has over 30,000 people in the US working across 450 locations
- With its business improving, TCS’s overall hiring has picked up sharply in recent quarters
Asked whether TCS would make higher net additions onsite in the coming quarters, Lakkad said the numbers are not going to change significantly. “We already have a significant number,” he said. When TCS’s employee strength was 3.18 lakh, Amsterdam-based The Top Employer Institute had said TCS has over 30,000 people in the US working across 450 locations.
With its business improving, TCS’s overall hiring has picked up sharply in recent quarters. It made a net addition of 12,356 employees in the June quarter, its highest in 5 years, taking the total headcount to 4.36 lakh people.
US hiring has increased for most IT players as part of the effort to overcome visa hurdles and also because of the need to be closer to clients to deliver some of the new-age digital solutions. Infosys has about 27,000 employees in the US. The number of US locals in Wipro’s US employee base stood at 63.7% as of March this year, compared to 46.2% two years prior to that.
Lakkad said TCS has given 100% of the quarterly variable payout to 85% of its employees, but for the remaining 15% (senior level executives), it will vary depending on the business unit performance. The payout will be reflected in the July payroll.
The lower payout for senior executives appears to be on account of the company’s softer performance in the June quarter – both in terms of revenue and margins. The operating margin has declined for five straight quarters. Margins have been hit by a stronger rupee, salary increases, higher sub-contracting costs, local hiring in the US, and the need for investments in new technologies. Analysts believe margin recovery could take time.