TCS freezes hiring, no more increments

Source: ndtv.com

TCS has decided to freeze hiring and only make an exception if need arises. The commitments of last year are already weighing heavy on company's financial health. The largest Indian IT company, TCS, is also one of the largest employment generators in India. It offered over 24,000 jobs last year, but for all you professionals graduating this year need to be prepared for the worst.

You may end up staring at a closed TCS door because the IT company with over one lakh employee base has decided to freeze hiring and only make an exception if need arises. After all, the commitments of last year are already weighing heavy on company's financial health.

S Mahalingam, CFO of TCS, said, “Because of the last year offers there will be an additional employee cost. We will honour no more increments.”

Employees form almost 50 per cent of the total cost for a company like TCS, therefore TCS is not just freezing fresh hiring, it’s also coming down heavily on overhead costs. "There will be no increase in infrastructure company. We will move into SEZs," Mahalingam said.

Well, it’s not just TCS that’s on a hiring freeze. Industry sources say that the IT sector has seen a drop in hiring by more than 20 per cent in the last one year. Combine that with layoffs and deferred campus recruitments, clearly the IT pack is on an aggressive cost cutting mode.