As artificial intelligence changes the way businesses operate, TCS is navigating this shift by modernizing legacy systems, expanding internal capabilities, and preparing the workforce for the future. Even if automation gains position, the company is confident in its employment momentum. With an emphasis on internal growth, clear communication and operational efficiency, the focus is on attrition, wage expectations and evolving talent needs. In an interview with Urvi Malvania, HR Director Milind Lakkad explains how the company manages change while maintaining continuity. excerpt:
QWe added over 5,000 employees in the first quarter. Although they say recruitment should not be closely tied to quarterly business performance, they also noted that Q1 results were shaped by business evolution. How do you balance these two?
This has two parts. We started the year with a specific assumption about where we were in the first quarter, but as the business environment evolved, we had to adjust accordingly. So we're in this number. Some of the recruitment is for the future as well as for today. The talent we bring needs to be contextualized for our customers, and that takes time. So this also means preparing for what's ahead. It may be fused from one quarter to another, but don't look at it alone. The whole year offers better views.
QWhat are you doing to reduce wear and tear that exceeds your current level of comfort? Are you worried that if wage hikes are delayed, it could rise? What internal levers influence your decision about when to implement salary increases?
We focus on three things: providing the right opportunities, creating a positive environment where people feel like part of a team, and ensuring that employees feel listened and valued. If you do these things consistently, people tend to stay. This is not a one-off project, it's a continuous effort. It is not accurate to say that there will be no consequences unless you act on wage increases. Yes, it may make sense. However, open communication is important. At the same time, we need to be very strong in our performance so that we are in a position to respond promptly and take the right steps for the people. It is always a balancing act of multiple stakeholders. Growth is important. Operations must be carried out efficiently to maintain profitability of your benchmark. If the demand environment stabilizes, it will be very unstable at this point, but we will make a decision.
Q What are your assessments about how AI is changing the nature of its work at TCS? Despite the rise in automation, why do you think employment is not affected?
AI for reimagining business is an opportunity. There are already some new pipelines in it. Clients are moving beyond the proof of concept as they set up excellence in the AI center search for specific returns. We support them on that journey. There are also opportunities that previously did not exist, such as legacy modernization. Some green buds are already visible. Previously, work could cost X dollars. Today, it can be done at 0.6 or 0.7 times. But now there are five or ten jobs, but before that wasn't viable. The nature of the work changes. The interaction between humans and AI becomes the norm. This increases productivity, makes complex tasks simpler to execute, and overall work. That's why I don't think employment will decrease, at least in the short term.
QDo you expect humans to play more governance roles while automation handles repetitive tasks? How are you preparing your team for this transformation?
It's part of the shift, but deeper. This is about rethinking how technology is used in contexts such as changes to business models and how software is developed and tested. From rethinking the software development lifecycle to generating new business ideas, everything still requires human involvement. People in the loop are important. This is a continuous feedback loop, such as performing actions, observing and refineting the output. This is similar to how you work with the Gen AI prompt. Our learning ecosystem needs to coincide with this change. We build a pyramid of AI skills, from beginners to experts, and use AI internally for scaling, recruiting, talent engagement and development.
Q: Will the growing demand for AI and data talent lead to increased wage competitiveness in the market?
We pay for what we need to hire the best talent. But we also focus on internal talent development. Our pyramid model aims to balance external employment with internal growth and do this at an optimized cost.
QIn a rewarding business environment, how do you strategize employment from campus and markets?
It is always a balanced act. But one thing is for sure: celebrating all the offers they made on campus. The only variable is to bring it multiple times in each quarter, depending on the situation in your business. We will continue to touch the candidates constantly and make sure there are no surprises. Market employment is driven by product demand. Many are hired for new opportunities and existing roles are also met.
