TCS CEO Confirms Shift in Workforce Strategy Amid Green Card Changes
TCS emphasizes local hiring and AI talent acquisition as it adapts to US green card processing changes.
TCS reduces reliance on green cards, focusing on local hiring.
Plans to hire 15,000 more employees in the US over five years.
AI revenue surpasses $3.1 billion, driving new business opportunities.
In a recent statement, TCS CEO K Krithivasan highlighted that green cards have never been central to the company's workforce strategy. The firm has notably decreased its applications for permanent residency for H-1B employees and is actively increasing its local hiring efforts in the United States. Krithivasan noted that the recent suspension of green card processing in the US will not significantly impact TCS's approach to talent management.
Krithivasan explained that over the past few years, TCS has been applying for a limited number of green card permanent residencies, indicating a strategic shift towards local talent acquisition. Currently, locally hired employees constitute 50% of TCS's workforce in the US, and the company aims to recruit an additional 15,000 individuals in the next five years. TCS employs approximately 11,000 H-1B workers out of a total workforce of 30,000 in the US.
The company’s operational model involves sending employees from India to the US for two to three years to work on client projects before they return. This strategy facilitates a continuous exchange of talent between onsite and offshore locations. TCS also mentioned that its hiring of fresh graduates will be based on demand rather than a predetermined target, having onboarded 10,000 freshers in the last quarter compared to 14,000 in the previous one.
In addition to local hiring, TCS has increased its recruitment of AI-native talent from Indian universities by 50%. This move is part of its strategy to enhance capabilities in AI-led technology services. Sudeep Kunnumal, TCS's Chief Human Resources Officer, expressed confidence in the success of these new recruits, noting their ability to build credibility with clients and deliver exceptional results. The company's total employee count has now reached 590,000, following the addition of 4,258 employees in the last quarter.
TCS reported that its annualized revenue from AI has exceeded $3.1 billion, representing over 10% of its total revenue. Krithivasan mentioned that TCS is engaging in new types of deals with clients like Porsche and Best Buy, focusing on transforming their operational models in light of AI advancements. He emphasized that the goal is to assist clients in becoming AI-first enterprises. While TCS anticipates that AI-driven opportunities will help counterbalance productivity-related declines in traditional tech services, he noted that a significant shift in net growth contributions may take between six quarters to three years to materialize. Technology spending is expected to remain stable or see slight increases as clients invest in AI and modernization efforts.
