Tata Consultancy Services (TCS), India's largest IT services company, is facing a huge challenge in filling a huge number of vacant positions. At a town hall meeting earlier this month, Amar Shetty, head of global operations for TCS's Resource Management Group (RMG), said the company currently has thousands of vacant positions that go unfilled due to a skills shortage.
Shetye puts the number at 80,000.For those who don't know, the RMG team at TCS is responsible for allocating available resources to various projects across the company and, in case of shortfall, fulfills the requirement through contractors.These contractors act as hiring agents and may or may not be hired as permanent employees by the company.
The cause of the skills gap is said to be a mismatch between the skills employees have and the roles they are required to play.
An employee who attended the town hall meeting, speaking on condition of anonymity, told TOI: “We were told that either the skill set or the employee's motivation did not match the project requirements. But at TCS, employees are not forced to take up a project if they are not comfortable with it.”Another employee who was on the bench added: “He told us that unlike other companies, we should consider ourselves lucky that they are not firing employees for not being assigned to a project.”Currently, 33% of job requirements are met by developing existing talent, according to the company's recent annual report.
“TCS has the largest AI-enabled workforce in the world”
After announcing fourth-quarter results, TCS CEO K Kritivasan said the company has built one of the largest artificial intelligence workforces in the world. “TCS is currently working on over 200 projects with clients and GenAI, with a promising future pipeline across industries,” he wrote.
TCS posted strong performance in the fourth quarter of fiscal 2024-25. “The quarter was a strong one for the company in terms of deals and execution. Our sustained focus on operational excellence led to an operating margin of 26 per cent,” he said. The management also said deal wins were “across markets, verticals and geographies.”
The Mumbai-based company said it signed new contracts worth $13.2 billion in the fourth quarter, one of the highest ever for the company, but signaling a cautious recovery for the industry. The pain may have bottomed out and FY25 will be better than FY24, the company added.
TCS' Gen-AI deal pipeline is said to have reached $900 million. “Our generative artificial intelligence (AI) pipeline has surged to $900 million, doubling in value. The total contract value (TCV) of this deal consists primarily of standard-sized deals, excluding significant wins secured in Q3,” the company said in its earnings report.
TCS sees first decline in employee numbers in 19 years
TCS' full-year employee headcount fell for the first time in 19 years. The company reported a decline of 1,759 employees in the fourth quarter of fiscal 2024-25 compared to the previous quarter. TCS ended the fourth quarter with a total employee headcount of 601,546, of which women made up 35.6%.
Shetye puts the number at 80,000.For those who don't know, the RMG team at TCS is responsible for allocating available resources to various projects across the company and, in case of shortfall, fulfills the requirement through contractors.These contractors act as hiring agents and may or may not be hired as permanent employees by the company.
The cause of the skills gap is said to be a mismatch between the skills employees have and the roles they are required to play.
An employee who attended the town hall meeting, speaking on condition of anonymity, told TOI: “We were told that either the skill set or the employee's motivation did not match the project requirements. But at TCS, employees are not forced to take up a project if they are not comfortable with it.”Another employee who was on the bench added: “He told us that unlike other companies, we should consider ourselves lucky that they are not firing employees for not being assigned to a project.”Currently, 33% of job requirements are met by developing existing talent, according to the company's recent annual report.
“TCS has the largest AI-enabled workforce in the world”
After announcing fourth-quarter results, TCS CEO K Kritivasan said the company has built one of the largest artificial intelligence workforces in the world. “TCS is currently working on over 200 projects with clients and GenAI, with a promising future pipeline across industries,” he wrote.
TCS posted strong performance in the fourth quarter of fiscal 2024-25. “The quarter was a strong one for the company in terms of deals and execution. Our sustained focus on operational excellence led to an operating margin of 26 per cent,” he said. The management also said deal wins were “across markets, verticals and geographies.”
The Mumbai-based company said it signed new contracts worth $13.2 billion in the fourth quarter, one of the highest ever for the company, but signaling a cautious recovery for the industry. The pain may have bottomed out and FY25 will be better than FY24, the company added.
TCS' Gen-AI deal pipeline is said to have reached $900 million. “Our generative artificial intelligence (AI) pipeline has surged to $900 million, doubling in value. The total contract value (TCV) of this deal consists primarily of standard-sized deals, excluding significant wins secured in Q3,” the company said in its earnings report.
TCS sees first decline in employee numbers in 19 years
TCS' full-year employee headcount fell for the first time in 19 years. The company reported a decline of 1,759 employees in the fourth quarter of fiscal 2024-25 compared to the previous quarter. TCS ended the fourth quarter with a total employee headcount of 601,546, of which women made up 35.6%.
