TCS profits increase by over 30%

Tata Consultancy Services (TCS) increased its profits by almost 32% and plans to recruit 55,000 people in 2014

India’s largest IT service provider Tata Consultancy Services (TCS) increased its profits by almost 32% last year, and has set its sights on recruiting an extra 55,000 people in 2014 to help it meet increased demand.

TCS reported $858m profit in 2013, which was a 31.7% increase over 2012. Sales were $3.44bn for the 12-month period.

It added about 15,000 recruits in the last three months of the year, taking its total workforce to 290,713.

The company is confident of a strong 2014. “Based on initial discussions with our customers, we believe 2014 will be a stronger year for us than 2013, as customers execute their business plans in a relatively stable environment,” said CEO N Chandrasekaran.

He expects digital technologies to be invested in by enterprise customers. 

“With digital technologies rapidly changing the way an enterprise operates in multiple dimensions, our continuous investments positions us well to help customers re-imagine their business," Chandrasekaran added.

The company is stepping up recruitment efforts to meet demand. 

“To support business growth, we have increased our hiring target by a further 5,000 employees for the current financial year, to 55,000 professionals,” said Ajoy Mukherjee, global head of HR at TCS.

Mark Lewis, a lawyer at Berwin Leighton Paisner, said it would be interesting to see what proportion of revenue is onshore and offshore generated.

“These are great results and TCS seems to be successfully transitioning from an offshore provider to a global delivery service provider,” he said.

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