TCS to Recruit Over 40,000 Trainees Next Year, Minimizes Reliance on US Visas

K Krithivasan, CEO and MD of Tata Consultancy Services (TCS), emphasized the company's reduced reliance on US visas, stating, “Our US visa dependency is not very significant. We have changed our model again, with more than 50% local workforce in the US.” TCS has actively focused on creating a global workforce, hiring talent across multiple locations to reduce dependency on immigration programs.

Plans to Onboard Over 40,000 Freshers in 2024

India’s largest IT services company, TCS, announced its ambitious recruitment plans for 2024, targeting over 40,000 trainees. Milind Lakkad, TCS Chief HR Officer, stated in an exclusive interview with Source, “It is a very positive trend, and I am planning to do more than 40,000 next year.” This follows the company's continued focus on expanding its talent pool, despite challenges in the global tech hiring landscape.

Workforce Reduction in Q3 FY25

For the October to December 2024 quarter (Q3 FY25), TCS reported a net reduction of 5,370 employees, bringing its total workforce strength to 607,354 from 612,724 in the previous quarter. This marks the first quarter in FY 2024-25 where TCS saw a decline in headcount. However, earlier in the fiscal year, the company recorded a net addition of 11,178 employees in the first two quarters.

Attrition Rates Show Minor Fluctuation

The attrition rate for TCS rose to 13% in Q3, slightly up from 12.3% in the previous quarter. Milind Lakkad downplayed the change, stating that it falls within the company's comfort range. He also predicted a reduction in attrition in the coming quarters, attributing the current fluctuation to the calculation method for last twelve months (LTM) data.

Indian Companies Continue Dominance in H1-B Visa Beneficiaries

A recent analysis of US immigration department data highlighted that Indian-origin tech companies accounted for 20% of all H1-B visas issued by the US. TCS and Infosys were at the forefront, with 5,274 and 8,140 beneficiaries, respectively. Despite this dominance, TCS has strategically reduced its dependency on the H1-B program by focusing on a locally driven workforce model in the US.

Focus on a Global Workforce Model

Milind Lakkad commented on the evolving workforce strategy, saying, “There are many things we are dealing with; this is not the one which is at the top of my mind because we have had a global operating model, global workforce. We have been hiring people across all locations.” TCS’s strategic move to bolster its local workforce aligns with its broader goal of creating sustainable and diversified hiring practices.

Anticipation Around US Visa Policies

The announcement comes as global attention shifts to US policies under President Donald Trump’s second term, particularly regarding the H1-B visa program. The program, which allows US companies to hire foreign workers in specialty roles, has been a critical enabler for Indian tech firms, including TCS, to maintain a competitive edge in global markets.

Conclusion

TCS's strategic focus on reducing US visa dependency and enhancing its local workforce underscores its adaptability to evolving global dynamics. By planning to hire over 40,000 trainees in 2024 and maintaining a diversified, globally distributed workforce, TCS aims to strengthen its position as a leader in the IT services sector. Despite temporary challenges such as a slight increase in attrition rates and a reduction in workforce numbers in Q3 FY25, the company remains committed to sustainable growth. As it leverages its global operating model and prepares for the changing landscape of US visa policies, TCS continues to set benchmarks for innovation, resilience, and talent acquisition in the IT industry.