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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