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[June 20, 2014]
TCS' FACE VALUE CLIMBS, FOCUS ON FRESHERS BRINGS DOWN STAFF COST
(Indian Business Insight Via Acquire Media NewsEdge) Information technology services company Tata Consultancy Services (TCS) has managed to keep its employee costs much lower than its peers because of its higher intake of freshers and a lean middle management. The focus on new hires has helped TCS to earn huge margins and also have considerable flexibility on deploying its resources. TCS effectively achieved a 6.3 percent reduction in average employee costs every year during 2007-2013. During this period, the percentage of new graduates hired of the total rose from 50 percent to 80 percent. Hiring more freshers gives TCS the flexibility to use them in lower value and transactional activities, while freeing up the more experienced employees for higher value work.
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