At a time when job losses are grabbing headlines, almost 5,000 employees of Tata Consultancy Services (TCS) have in fact left the company on their own. Last Friday during its quarterly results, the company announced that its annual attrition rate was at 11.5 percent.
The headcount of India’s largest software exporter shrank despite a gross addition of staff. According to Hindustan Times, in the latest quarter TCS added a total of 2,828 employees with the total headcount of 1,43,761 at the start of the quarter. If the new hires are taken into consideration, the total employees strength should have reached 1,46,589 by the end of June. However, the firm’s headcount was at 1,41,642 as of June 30, 2009, showing a net reduction of 4,947 employees.
A company spokesperson confirmed the staff decline but added that TCS’s attrition levels were in line with the industry average. “Our attrition level has remained similar to what it was in the previous quarter. However, since we have controlled gross additions, the overall headcount has come down,” said a TCS spokesperson.
The spokesperson added that the company was hiring fresh graduates as per need, but will honor the 24,885 campus offers it had made last financial year and those students would come on board only from the second quarter (July-September). Like its competitor Infosys, TCS decided to honor old commitments on campus recruitments while slowing down the hiring of new graduates. But lateral hiring of experienced staff is continuing, though on a low key.
It needs to be seen if these 5,000 employees have in fact quit voluntarily or were they forced to leave by the company.
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Reader’s comments(23)
1: This year also TCS has recruited so many fresh graduates from Campus and all are waiting for their joining. This is actually playing with their career…these people missed so many opportunities after getting selected in TCS. TCS is misusing its brand name. They should have more ethical HR policies…It is agreed that companies are there to make money & not for charity but TCS shouldn’t have recruited if they don’t have projects in hand.
Posted by: Sandy3009 – 01:14 PM Jul 22, ‘ 09
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2: TATA is branded company
Attrition increase & decrease in every organization
HR & TCS policies are best as per corporate norms
So many employees are leaving the organization for different kind of reason
Force attrition is very less in TCS
News Paper & news channel want good Massala
Posted by: Nadir Sheikh – 01:10 PM Jul 22, ‘ 09
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3: TCS projects in India come by bribing Officers of client and making them pay crores for the projects smaller companies takeup for lakhs
Posted by: nisha – 01:09 PM Jul 22, ‘ 09
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4: 100% wrong that they quit on their own. if it so examine the reason you would find its not by own decision. because all of them might not be have reason to quit at same time. Also TATA is branded company and have more quality. it must by the higher official’s who forced others to save their income.
Posted by: Siva – 01:00 PM Jul 22, ‘ 09
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5: I dont’t know but some 5-6 days back i got call from TCS for skills that i have.May that was the technology i am working is little presence in Indian market but they called me i said no to TCS !
Guys you must think twice before joining such companies which misuse their brand name and harrasing Talented people.
You gets big check initially but you starts feeling the truth after 2 years that you are being harrased in Satyam ,TCS or Infosys thats fact!
Biggest problem with Indian IT companies is that they are project base not even single company here focus on Product Software.
Projects based companies always remains dependenty on Clients.
If some one from above companies read this , can reply to me how many Product Softwares You have which works across the world ?
Have you ever considered any ‘People’s Software” that can make a market of your own like “Nano”, Nope !
Actually these companies shows that they are talented but relity is that they are not able to create a market for themselves. They have to rush for Projects.
Why India have so purchase defense softwares from Abroad if you are so Talented companies?
Posted by: Sandy – 12:51 PM Jul 22, ‘ 09
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6: Hey folks.. If you were owning a company of around a one and a half lakh, then you would have understood the complexity involved.. Recession is a time where there comes “the survival of fittest” policy.. The fittest guy remains and the rest wil be thrown.. There is no meaning in weighing everyone in same scale.. The filtering should happen based on performance and as i know from my frens in tcs, the same is being done.. how can u pay someone who won’t deserve.. Moreover, TCS is very reasonable in such policies. Many ppl are being paid from past 1 yr without allocation to any project.. Again i would say.. never depend on luck.. because luck is something in which someone will get something for which he/she is unfit.. Survival of the FITTEST..
Posted by: Vivek – 12:22 PM Jul 22, ‘ 09
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Cancel 7:you are absolutely wrong. If people does not deserve to be paid then why were they hired in the first place.
When TCS hires people they will obviously hire people who are talented. There is no point in saying that the people fired were belowor avg performers. Its a ploy by TCS to say so or to say that 5000 people quit by themselves.
tarun replied to: Vivek
post – 01:01 PM Jul 22, ‘ 09
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8: I think wrong statement had given by mistake, don’t worry friends TCS might announce what is fact by tomorrow:)
Posted by: Ishwar – 11:36 AM Jul 22, ‘ 09
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9: Yes I’m agree with tarun, one of my friend was worked for TCS. One day he called in Andheri(Mumbai) office of TCS and they give him resignation latter and tole either sign on it or we will fire you. So he has not another option
Posted by: Ashish solanki – 10:54 AM Jul 22, ‘ 09
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10: Its a trick played by TCS. There is no way 5000 employees will quit on their own. TCS fires them and at the end of the day will ask the employees to submit a resignation letter so that TCS can then claim that employees quit on their own.
This procedure is followed by most of the companies who would like to fire huge number of employees..
Posted by: tarun – 10:36 AM Jul 22, ‘ 09
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Cancel 11:Ya you are right…At this rescission time who will like to quit the job. As of now all are just sticking to their current job and working more than 10hrs/day. No one is ever thinking of change. Only the people who are in bench are afraid that they might be given pink slip and are seriously looking out for change but chances of getting job is less than 10% and companies are not entertaining people who have high CTC, Those whose package is less(for 4-5yrs exp) are at least getting jobs here n there.
Ravi replied to: tarun
post – 11:06 AM Jul 22, ‘ 09
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Cancel 12:Its a very clear mark that the employees have been compelled to leave the company by TCS. Because, if employees quit by their own then, 5000 employees cann’t leave altogather in the time of recession. So, it conflicts with the above statement.
I dont think and can’t digest that 5000 employees quit by their own….
Ayaz Ahmed replied to: tarun
post – 11:03 AM Jul 22, ‘ 09
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13: I would like to know whether the employees quit on their own or were made to quit by TCS.
Posted by: Ash – 10:31 AM Jul 22, ‘ 09
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Cancel 14:to know you should join TCS 
Khajoor replied to: Ash
post – 10:46 AM Jul 22, ‘ 09
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Cancel 15: There is no need to join TCS if situation is like this just we have to keep our eyes and ears open.
Shankar replied to: Khajoor
post – 11:05 AM Jul 22, ‘ 09
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16: I think TCS not telling truth to public , i think freshers who are dreaming about TCS need to learn all this because in future they can be one among this employees
Posted by: karthik – 10:30 AM Jul 22, ‘ 09
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Cancel 17:Most of the freshers had been cheated by such companies in the name of Campus selections. STill some freshers are waiting for the joining dates.
Kusuma replied to: karthik
post – 11:43 AM Jul 22, ‘ 09
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18: It cannot be surely said if all the employees actually quit or some of them were laid off, as it is become a trend these days.
Posted by: shankar – 10:03 AM Jul 22, ‘ 09
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Cancel 19:among those if anybody here could brief the saga.
karthik raja replied to: shankar
post – 10:19 AM Jul 22, ‘ 09
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Cancel 20: Guys,its true that most of these 5000 employees would have been forced to leave by TCS authorities. But, if you go in detail you will find that majority of them would be either average or below average performers and a figure of such performers out of 1.4 lacs is quite realistic. Why should an organization bear this cost in such tough times.However, there would be few who would not have got enough opportunity to prove themselves, which is sad but thats law of jungle.Whenever an organization is on a growth path/expantion it doesn’t bother about such costs because business keeps coming in but during such tough times this kind of cost cut is important. No organization expels its good empolyees till the time it is bankrupt.
Rishi replied to: karthik raja
post – 11:38 AM Jul 22, ‘ 09
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Cancel 21: I totally agree with Rishi. Btw I never worked for TCS but I’m sure it is just not TCS that forced their employees to leave. There are two ways in which an employee is asked to leave any reputed IT services company.
1) Company no longer expects project in the area of employee’s expertise. If this is the case the company will pay 2 month – 3 month salary before they ask you to leave
2)Firing low performers. Low performers are always intimated that they need to do well and when they see that the performance is consistently low and unfortunately if this person is on bench, then the companies have no choice but to ask the employee leave
It is rightly pointe that when the times are good, performance never matters much because the company will have fianncial resources to commit to even the lowest performer. But when the times are hard and when you need to cut costs it becomes impertaive for the organization to take these extereme measures. We just need to learn or digest these hard facts
Sandeep replied to: Rishi
post – 12:15 PM Jul 22, ‘ 09
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Cancel 22:
it is just a excuse to fire ppl. Why were ppl recruited if they were underperformers. Looks like HR of TCS is inefficient and they should be fired first coz they took wrong ppl that means.
anyways TCS is just taking advantage of situation thats all.
5000 ppl will never quit and that we and TCS all know abt it
what a lame thing.
ashwini pawar replied to: Sandeep
post – 01:00 PM Jul 22, ‘ 09
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Cancel 23: Hi Rishi, R u from TCS HR? Its the sole inefficiency of the HR policy. The whole responsibility goes to them. They wont have any right to play this dirty game. While they are trying to shed jobs, they tell only about performance lack, which is totally vegue. These policy makers should be fired first.
new_thought replied to: Rishi
post – 12:03 PM Jul 22, ‘ 09
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when i heard this news. i was feeling funny, bocz TCS reqruit the people like anything, then why they are worrying abt poor and good performance of thier employee.
hahahahhahahaha
I don’t understand why TCS recruits in bulk just for billing purposes and then lays off people like this. As it is TCS HRs are the worst in the industry who even treat a 5-10 yrs experience professionals as freshers. I recently had an offer from TCS and was in negotiation with them regarding the joining date , the HR decided not to return calls and I decided not to join them. Glad I did so.
Ya thats correct. I still remeber in my college it came for our seniors in year 1998 and recruited 60 people without seeing their branches and we used to look down upon the people who joined…by saying…”ARE TCS MEIN GAYA HAI”.
No one in software industry should join in TCS like company,…Where there is no security to job. This company seems to be completely doing business.
TCS HR has a fixed policy of giving poor appraisals to certain percentage of employees. If the employees perform their level best and get good result then also they can get poor ratings. In this manner TCS always has a pool of employees whom they can sack. Now, with rating 1 , a TCSer is fired immediately and with a rating of 2 for 2 consecutive years, he/she can be fired too. Now appraisals are never made properly throughout as once its given then it has to be accepted kind of dictatorship, TCS is not a good employee.
i wish to know.. is there any company is doing lay off like TCS. If so why this layoffs are hapening….
it really gives a bad impression about the company… whatever reasons TCS gives… the point is why you recruited in bulk… they are not just creating a bad name but also hatered in the hearts of the people. They think that their is so much unemployment in the market outside, they will easily get good resources… but the day is not far when the saying will become true… Kudedan main sirf kuda jaata hain.
this type of company are just BOGUS , company
I think its a right decision because everyear, they have to throughout all old employees and recruit new employees its great job tcs am with tcs cheer up to all terminated TCS guyz
What the fuck is these employees are doing in tcs.These are lazy people with no qualities ,even don’t know how to code or know nothing about the project they are involved.They better go and sweep the streets.Fuck these filthy dogs.
Well… Dollar is falling and company is loosing profits.
That makes them to fire ppl so as to cut down costs.
Tcs is also a company like other MNCs.
Ppl dont complaint if other MNC’s fire but they do when an Indian company fires.
if that is the case TCS should not be expected to pay as those MNC’s.
They will have to do something to avoid the company going towards bankruptsy or losses….
Hi!
Greatest joke of the year..when guys, who answer for questions like 1+1=2 get a job in TCS, how do they expect them to perform..ridiculous. I know a guy, who was cleared his 12th standard after three attempts working as a software engineer in TCS.
They have to sack another 50,000….they know that..
I think the employess who have been forcefully asked to resign the company, they should file a case against company for “Forcing to resign for wrong reasons”. I want to see if really TCS can proove that all these 500 hunderd people were performing below the average.
I think this is the way now Indian People should teach this blood sucking \ selfish companies.
We should not just keep mum now.. this is the time to ‘Halla Bol’.
What do you think, that all the IT professional working in TCS are worthless and not knowing about coding or so… Let me tell you Mr., these employees not only work but they have been delivered the best till now.
But I just want to say that where is the labor law in India? what it is doing? If these companies are allowed to take disadvantage of our silence then the day is not far when we all will be jobless and sweeping the streets.
It’s a very guile work done by TCS,
now how they can assure new generation for their good job’s opportunity, i think there is no future for a newcomer in companies like TCS………..
This is not fair.What ever be the reason they can’t justify what they have done.
They have done right thing…
Hey guys,
Cool down This is a process which TCS follows every year, but they have disclosed in media for the first time.
you are talking about 500 people, there are more than 1 lakh people in TCS, so it hardly makes difference.
What do you expect TCS to do?Pay them heafty money even after sitting idle for whole month..
Some one said that, they dont know coding and all..have you ever been in TCS, here employees work day and night to meet the deadlines and deliver everything on time.
Dont just go on saying any bull shit..
I personally know several people ,who work in tcs .They go to work at 10 am and return home at 5 pm.Yet they take home more than 30000rs pm.They work like in government.How ridiculous is this?
Actually its not to be worried for the Assocaites who do there work properly, and apart from that the associates who are not been able to show there effeciency and keep criteria such as project specific or region specific. Those must have faced the consequences.
Hi Guys,
This is a common process that every year TCS is doin…But the reason they gave is improper.
Thanks,
Sree
Hi,
This process is followed almost in each IT company and in time of crisis (recession), poor performers will be sacked. Rating is done based on performance with pre-defined targets and an associate is given enough oppurtunity to come to speed and perform. It is only after several attempts, such a hard decision is taken. I am sure, you as an entrepreneur will do the same if your employee does not perform.
Amit
mmm… Guyz whether TCS does this every year or not is not the issue… How do they do this on regular basis… If every year they give the same reason then TCS have the worst of all HR’s… If this is the part of company policies, then its better to be re-written…
We have to note something else as well, not just TCS does this many other companies which includes MNC’s are doing the same…
Bottom Line… Nothing much can be done… If anything needs to be done have the revenue of these companies…
Adding to the note… every year repetition of this will not make it “Justified”…
Instead of blaming the company we should say thanks to the group that at least they are providing an exposure to the graduates whatever may be the interests are.
@ raj :Yes it’s true that at the time of selection they look for the students having confidence and not much of technical knowledge, but it depends on individual how they take it. One should always fight for his existence… company never says that we are going to spoon feed you.
Only losers run out of the race…
So in my opinion company has not done nething wrong…..
and guys please think avoiding the “J” factor..!!
It is worse in Noida. Headstrong asks 20 employees to leave……….