TCS's UK workforce is reducing as UK business grows

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India's IT service providers are truly global. This is reflected in the diverse customer bases that they have. But is it reflected in their workforces?

 

Indian suppliers, such as Wipro and HCL, have been talking about the importance of having staff local to the countries they operate in.

 

Tata Consultancy Services (TCS) is India's biggest IT services firm and it seems to be reducing the British contingent of its workforce.

 

In April 2009 TCS had 143,761 employees and 91.7% of these were Indian.

 

Of the 8.3% non Indians (11,932) 8.3% were British (990)

 

In January this year TCS had 186,914 employees and 93.2% are Indian.
 

But of the 6.8% non indian (12,710) 5.2% are British (660).

 

But its UK business has grown. Anthony Miller at Techmarketview has estimated, following the latest round of financial results, that India's biggest IT service provider Tata Consultancy Services (TCS), could be the first Indian company to get in the UK top ten in terms of revenues. He estimates that TCS ended 2010 with UK revenues of about £765m,l which is 17% higher than in 2009.

So as UK business grows for TCS, its UK workforce shrinks.

Click these links for the data on 2009 and 2011.

 


 

7 Comments

So the impression is that the more business TCS does in the UK, the more of its already tiny UK workforce will lose their jobs. Not to mention the jobs lost by companies that might otherwise have undertaken this work in the UK. Or indeed the jobs lost indirectly as a result of public spending cuts due to the increased burden on welfare budgets caused by the loss of skilled jobs.

Glad to see Vince Cable and his pals are still eager to push UK voters out of work in favour of Indian voters on public sector IT projects, thereby expecting a dwindling number of UK taxpayers to pay the likes of TCS to put UK workers out of work.

Thanks, Vince.

How are you counting the significant numbers of Indian nationals (and their families) who originally entered this country on a work visa (mostly intra company transfer visas) and have been here so long they have been granted indefinite leave to remain or british citizenship

if you are counting all those british citizens (or ILR holders) who originally entered the country from india on work visas as "british" then these counts significantly underplay the widespread discrimination, abuse, and racism towards anyone entitled to a british passport from birth!

so it's much worse than these figures show

yeah I am totally support Iain Gil.We don't have exact or specific counting of all British citizens and Indians, because during some circumstances so many Indians have the go there permanently and same to British citizens.May be we have the rough estimate of UK workforce.Now a days its shrinks just because of theirs work ability.They are not that much of EfficientIT">http://www.polontech.com/>EfficientIT. But it can be raise any time....

Yes, but you also have to factor in the wider TCS Group in the UK. The numbers should include Diligenta, TCS's wholly owned UK subsidiary in Peterborough, which has taken on UK staff from Pearl and Sun Life of Canada UK. Diligenta also acquired in August 2010 Unisys Insurance Services Limited, with operations in Liverpool. I suspect the numbers you refer to do not include Diligenta and UISL. Please confirm.

Mark

Thanks for your comment. The figures quted are in TCS's results statement for the full year 2010 - 2011 (see link in the blog post.

The statement does not mention Diligenta and UISL so I presume it does not include them.

Regards

Karl

TCS stopped including the Diligenta numbers in their presentations after the end of 2008. I believe the numbers in Diligenta dropped from roughtly 1,000 to under 700 from 2006-2008. I think the original 1,000 Diligenta staff came from Pearl under TUPE, so they were not new jobs created by TCS.

TCS bought USIL a few months ago. I think over a thousand UK employees came with that deal and I would expect the number of British employees to fall as appears to have happened with each acquisition TCS makes in the UK.

Of course, it is common practice to cut staff numbers after acquisitions, and TCS is not unique in doing so. However few companies simultaneously shed British IT workers and bring in staff on visas to the extent that TCS does.

in the case of tata also worth watching what is happening to the IT development and support for Jaguar and Land Rover

you will not be surprised to note the number of Brits doing this work reducing and the number of Indian nationals rising

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About this Entry

This page contains a single entry by Karl Flinders published on January 21, 2011 11:50 AM.

TCS could be first Indian supplier to get in UK top ten was the previous entry in this blog.

IT professionals tire of poor management and a third expect to leave IT, but it's not all doom and gloom is the next entry in this blog.

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