Tata Consultancy Services expects its India business to be sluggish till the September quarter. The company attributes this to a slowdown in IT spending by Government agencies and corporations on account of the upcoming general elections.
“The volatility in the India business continues. We are not expecting a significant pick up in demand till September,” N. Chandrasekeran, Chief Executive Officer and Managing Director, said. The India business unit of TCS, which works with big-names such as New India Assurance and India Post, has dropped by about nine per cent on a quarter-on-quarter basis. Its contribution to overall revenues has fallen to 6.3 per cent from 6.9 per cent. The company had first articulated this in a briefing to analysts in December.
Hiring target Separately, the company has upped its hiring target for the current fiscal. It will hire 5,000 more employees, mostly experienced hands, to take its annual hiring target to 55,000 from 50,000 earlier. For the next fiscal, the company has said it would hire 25,000 campus hires. However, it has not given out the full-year target yet.
Attrition levels remained stable at 10.9 per cent. In the quarter gone by, TCS made gross headcount additions of 14,663 employees. At the quarter end, its employee strength stood at 2,90,713.