TCS plans to hire more and hike capex

By SiliconIndia  |   Thursday, 31 December 2009, 06:20 Hrs   |    7 Comments
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Mumbai: In the fiscal 2010-11, IT services company TCS is likely to pace up its hiring process, give wage hikes, as well as increase capital expenditure. "We are likely to hire more people next year (vis-a-vis the current fiscal) and we have also increased the quantum of work done offshore. This means we have to create more facilities going forward," N Chandrasekaran, Chief Executive Officer and Managing Director of TCS, told Business Line.

Starting January, TCS will approach campuses for recruitment for 2010-11. It may be noted that for the current fiscal the company has already given 24,888 offer letters for campus recruits, a good percentage of whom are expected to join, in a staggered manner through the fiscal. Earlier, TCS had indicated that it had nearly frozen lateral hiring for the current fiscal. That too seems to be changing and the company has increased the pace of hiring laterals or experienced professionals.

TCS, which had clamped down on salary hikes this year, is likely to be more lenient next year. The company is internally huddled in discussions to see how much wage hikes can be implemented next year, said Chandrasekaran.
For the quarter ended September 2009, TCS had reported a 29 percent rise in net profit at 1,642 crore against 1,271 crore in the corresponding year ago period. Next year's capex for the $6 billion company is likely to be higher than the 1,300 crore earmarked for the current year, a figure disclosed by the Group Chairman, Ratan Tata, at the company's annual general meeting last year. However, Chandrasekaran would not provide concrete numbers as the company is still in the process of firming up its plans for the next fiscal, ahead of its third quarterly results that are to be announced on January 15.

But, this revival in IT spend is propelling TCS to firm up hiring plans for next year and it is being led by companies in the banking, financial services space across geographies. TCS expects 2010 to be a better year for the company and the IT industry as a whole. And the growth is largely going to be volume-driven. "Short term, there may not be a pricing uptake; but I do not expect a (pricing) decline either. As demand picks up, pricing power will return," said Chandrasekaran.

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Reader's comments(7)
1: still TCS hasnt given joinings to nearly 12k recruits dey said by march dey r gonna end d process but when
Posted by:suresh - 07 Jan, 2010
2: TCS is really not suitable for experienced people. There is no hike for who joins with good packages in TCS after a year. Example If 3 yrs exp person salary was 5.30 lacks when he join, after one year if you are getting rating like (4 or 5) you will never get a hike. IF you get a rating below 4, they will cut your salary. More over NO one will help in this case. Simply you will get a answer like policy, system.TCS loosed so many good experienced people and in my project only more than 50 people left for this same reason. TCS will only think about cast cutting and they have a lot of fresher’s for replacement of experienced person. So who are all going to join (experienced people) in TCS, be careful and clearly verify your designations and salary before joining itself. HR will never say about this when you join. Otherwise you will be quit TCS in next year surely.
Posted by:ravi vasanth - 05 Jan, 2010
3: when will tcs conduct placements in colleges of navi mumbai.i m a final year IT student from bharti vidyapeeth college of engineering,navi mumbai.i wish TCS comes in our college or any nearby college in navi mumbai.pleaz keep the criteria of %%% and above.
Posted by:sneha ganesh jadhav - 03 Jan, 2010
4: when will they conduct the interview. its a good news for all freshers.
Posted by:kiran kumar - 02 Jan, 2010
5: Rather than indulge in all this hype , TCS should concentrate on setting it house in order.The linear growth services model is coming to an end.better find something new while u can...
Posted by:namita - 01 Jan, 2010
6: No No No be careful before joining, see what that company did in the past to their employees, some 5000 head count was missing in this same silicon India site i read about that , it is warning to all who join
Posted by:karthik.k - 31 Dec, 2009
7: IT means Hire n Fire but tell us whether LIFO (Last In and First Out) or FIFO(First In First Out). Remember Work is God n Health is Wealth
Posted by:Gods must be crazy - 31 Dec, 2009