Tata Consultancy Services (TCS) announced its quarterly results on Wednesday, January 12, 2022. Beyond the financials, TCS announced several milestone achievements during the quarter ending December 2021 as well as forward-looking plans. Here are 5 trends from the quarter results:
1. Cloud is the #1 growth driver
Cloud technology has been the buzz word for the past 5 years but the Covid-19 pandemic pushed organizations towards rapid digital transformations. Customers as well as governments are investing heavily in digitalization. From pharmaceutical to manufacturing, industries are looking to migrate their operations to cloud for a seamless experience. Customers are also looking for cloud adoption for employee experience and HR functions as well.
TCS saw a continued momentum in the demand for cloud adoption, as more and more customers seek multi-horizon cloud transformation journeys. The hyper scaler business units have outperformed yet again and persist as the number one growth driver for the company.
In fact, across all key major hyper scalers, TCS continues to be the preferred partner for customers when it comes to cloud transformation,” said Rajesh Gopinathan, chief executive officer and managing director, TCS.
2. Marching towards equity in the workplace
The brand value of TCS has pulled job seekers to the company but what sets the company apart from other employers is its commitment to workplace equity. The company has endeavored to increase the representation of women in its workforce.
As a result of this endeavor, this quarter TCS crossed the important milestone of having more than 200,000 women employees. Now, TCS employs 200,271 women, roughly 36% of the entire workforce. This means 1 in every 3 TCSer is a woman. Among the junior cadre, 44% are women. TCS is building a strong network of women associates that are growing in their careers and is also keen to nurture young talent.
3. India is a platform-driven market
There is a growing demand for digital platforms in the Indian market, especially as banks, customers and the government move towards digitalization. TCS offers a range of platforms for the smooth transition for its customers. Given the growing appeal for digital platforms, products and platforms offered by TCS did well in the quarter.
The growing popularity for TCS’ core banking solution TCS BANCS is a testament to this growth momentum. Another example is MasterCraft, a trademark solution application development, modernization and delivery, as well as data transformation, privacy and quality. By the end of the quarter in December 2021, MasterCraft has added 24 deals to its tally.
4. Churn in talent market slowing down
TCS has been a favorite destination for job seekers across all experience levels. Naturally, TCS has been able to attract talent despite the volatile talent market scenario. During the quarter, the account associate count increased to 87,700 and TCS hired over 34,000 freshers.
So far TCS has hired around 74,000 freshers in FY22, which is well above the annual target of 70,000 set at the beginning of the year. Over 110,000 promotions were handed out so far and another 40,000 promotions are expected in the upcoming quarter.
“Holding ourselves accountable for the skills required has been the hallmark of TCS. We will recruit for the skills required,” said NG Subramaniam, chief operating officer, TCS.
However, there are signs that the talent crunch curve is flattening, said Milind Lakkad, chief human resources officer.
5. Hybrid work model is here to stay
In November last year, TCS had asked its associates to report to their base branches in a bid to resume work at physical offices. However, rising Covid-19 cases across the world is a cause for concern. Keeping the safety of the associates and their families in mind, TCS has put its return-to-work plans on hold.
While most associates will continue to work from home, some senior leaders may be allowed to come to offices, if required. “The leaders will have to take a call depending on the situation. The hybrid work model will stay and our offices are geared to meet the requirements of a hybrid work environment. Currently, person-to-person interactions have been limited to premium issues only,” said Subramaniam.