India’s largest software services provider, Tata Consultancy Services (TCS), plans to hire 25,000 trainees from college campuses in the next financial year. This year 25,000 students were offered jobs; of them up to 19,000 are expected to join, according to Ajoy Mukherjee, TCS executive vice-president and global HR head.
Further, TCS has raised the number of trainees to be hired this year by 5,000 to 50,000 following good results and a full order pipeline.
“We have added over 17,000 gross employees in the second quarter,” Mukherjee told reporters on Wednesday. The total headcount now is 285,250.
He said 25,000 offers had been made last year and they were to join this year. On-campus hiring happens a year in advance. Joining started this July. In Q2, 6,300 trainees joined TCS; and more will do so in Q3 and Q4. The ratio of those joining and those offered jobs has improved from 69-70 per cent to 72-74 per cent.
For 2014-15, the recruitment process started in September. The company will visit between 370 and 400 institutes.
The utilisation rate, excluding trainees, in Q2 was 83.4 per cent and 75 per cent, including trainees, a 2.5 per cent improvement.
Mukherjee said the utilisation level could improve. He said it was imperative to increase hiring guidance as “it takes six to 10 weeks to train employees.” The cost would go up if the company hired only laterally (i.e., experienced hands) for every project, he said explaining the trainee numbers.
The company hired 600 employees in Q2 in the US where trainee recruitment during the year will number 120 to 150. Though the company does not want to provide any guidance for the year, it assumes the number will likely increase.
The company has not made any change in the average annual salary structure of entry-level professionals. “This has varied between Rs 3.15 lakh and Rs 3.25 lakh during the past four years,” he said.