Tata Consultancy Hires 70,000 Employees

[touchring]

I bet at least 50,000 of them are for American companies.

http://www.bloomberg.com/news/2011-0...employees.html

Tata Consultancy Hires 70,000 Employees
By Ketaki Gokhale - Jun 15, 2011 1:41 PM GMT+0800

Demand for Tata Consultancy Services Ltd. (TCS)’s outsourcing services is so robust the information- technology company hired 70,000 workers last fiscal year and plans to add 60,000 more this year.

Tata Consultancy projects annual sales, which have quadrupled since 2005 to $8.4 billion, will increase 20 percent a year for the “foreseeable future.” That has it and Indian rivals Infosys Technologies Ltd. (INFO) and Wipro Ltd. (WPRO) hustling to find hundreds of thousands of qualified candidates as global IT purchases grow 7.1 percent this year to $1.7 trillion.

Tata Consultancy’s expertise at using low-cost IT workers to replace more expensive labor in developed countries helped it land contracts with Deutsche Bank AG (DBK), Hilton Worldwide Inc. and Air Liquide SA last fiscal year. The company, Asia’s largest computer-services provider by market value, reported record annual income of $2 billion.

“As long as there’s growth, you don’t want to leave business on the table,” said Ajoyendra Mukherjee, Tata Consultancy’s vice president for human resources. “What we’re trying to do is make sure the supply chain is large enough to meet our growth requirements in the future.”

[sunpearl71]

Re: Tata Consultancy Hires 70,000 Employees

Possibly. A lot of this hiring is also aimed at satisfying India's own domestic IT services industry which is growing at 17% per annum, more than double the global IT market growth rate. Please see http://economictimes.indiatimes.com/...ow/8854060.cms.
TCS has one of the biggest domestic IT services business among Indian IT services companies.

[CanuckinTX]

Re: Tata Consultancy Hires 70,000 Employees

The interesting thing here is that I can see this further eroding any wage gain leverage in the developed countries. Tata just won a huge contract at one of our customers in the UK at the expense of much more experienced local companies. Tata doesn't have the skills to implement this massive ERP system but they won based on lowest cost.

Now they're trying to poach experienced consultants from the local firms to actually do the work. None of the people joined Tata, presumably because the pay would be a fraction of what they're getting, but as their opportunities dry up and continues to shift to the lowest cost companies they'll have to start taking these offers seriously if they want to remain employed, albeit at a much lower salary.

[touchring]

Re: Tata Consultancy Hires 70,000 Employees

Now they're trying to poach experienced consultants from the local firms to actually do the work. None of the people joined Tata, presumably because the pay would be a fraction of what they're getting, but as their opportunities dry up and continues to shift to the lowest cost companies they'll have to start taking these offers seriously if they want to remain employed, albeit at a much lower salary.

This is why they are called body shops. lol

[sunpearl71]

Re: Tata Consultancy Hires 70,000 Employees

Not surprised. Tata are notorious for their aggressive pricing tactics, even within India. One of the smaller, but better resourced and experienced companies I am advising have been outmuscled by Tata on price. Having won the contract, Tata are now struggling to deliver! So it's a familiar story both locally and internationally.

[CanuckinTX]

Re: Tata Consultancy Hires 70,000 Employees

I guess the better question is why are firms still going for the lowest price consulting firms!?! The headlines are rife with stories of botched ERP implementations (my industry) and 9 times out of 10 it's due to the people that implement, not the product. If the products were that defective nobody would be using them.

[ER59]

Re: Tata Consultancy Hires 70,000 Employees

Tata people 'outsourced' me out of my last job. I've been there as a consultant in IT for about 18 months, and this outsourcing was happening right before my eyes, finally they brought in 4 Tata people to do what i was doing alone, and let me go. According to my manager even 4 Tata people was cheaper than me, and I am nowhere near the high end compensation wise.

[flintlock]

Re: Tata Consultancy Hires 70,000 Employees

Rip usa

[neoken]

Re: Tata Consultancy Hires 70,000 Employees

Meh, enjoy the growth while you can, in a couple of decades they'll be all replaced by natural language ai systems anyway.

[doom&gloom]

Re: Tata Consultancy Hires 70,000 Employees

Tata -- the McDonalds of India.

[touchring]

Re: Tata Consultancy Hires 70,000 Employees

Tata people 'outsourced' me out of my last job. I've been there as a consultant in IT for about 18 months, and this outsourcing was happening right before my eyes, finally they brought in 4 Tata people to do what i was doing alone, and let me go. According to my manager even 4 Tata people was cheaper than me, and I am nowhere near the high end compensation wise.

You got to come to Singapore to see what happens when the doors are open to Indian IT professionals. There is no quota imposed by the Singapore government on hiring anyone from India. There is no concept of green card, any software guy can get a work permit and work forever in Singapore.

What happens is that over time, the wages of local IT professionals start to drop until it is just 10%-15% more than Indians. Never mind the company needs to hire 2 Indians to work the work of 1 local. This is because Indians trust Indians better. So Tata consultancy in Singapore will rather hire an Indian even if a local is more productive.

After sometime, when there is virtually no more local people left in the IT industry, that's when the Indian companies start to raise their fees. This is the service equivalent of dumping.

This will happen to the USA eventually if status quo continues.

[flintlock]

Re: Tata Consultancy Hires 70,000 Employees

Here's the script. Low cost labor is brought in by multinational corporations, putting locals out of a job. The Unemployed put additional pressure on welfare services. Add to this the families of low cost labor that still require assistance because they don't earn enough to support a family from cradle to grave. Current taxes are no longer high enough to pay for all this, so taxes are raised. Higher taxes make companies less competitive in the global market. Companies eventually move operations to countries with better tax treatment/lower costs. So now even more unemployment, with the corresponding higher taxes to pay for these additional people out of work. Rinse, wash, repeat. Eventually you don't have much of an economy remaining. Only stuff that can't be provided off shore remains to employ those lucky enough to still have a job. This is not a particularly good economic plan if you ask me.

[mfyahya]

Re: Tata Consultancy Hires 70,000 Employees

There's one more thing. Over time the outsource labor gains valuable skill and experience. I've dealt with TCS, many of their employees had low skills and poor communication skills, but most of the more experienced ones (especially those who had worked outside India) were productive on par with people from Western companies.

IT skills generally stagnate if they are not kept sharp and up to date. That's more pain for those put out of a job by IT outsourcing.

[mikedev10]

Re: Tata Consultancy Hires 70,000 Employees

Tata people 'outsourced' me out of my last job. I've been there as a consultant in IT for about 18 months, and this outsourcing was happening right before my eyes, finally they brought in 4 Tata people to do what i was doing alone, and let me go. According to my manager even 4 Tata people was cheaper than me, and I am nowhere near the high end compensation wise.

curious what your area/specialty is or was at that client?

[CanuckinTX]

Re: Tata Consultancy Hires 70,000 Employees

Yes that's true, and then as the workers get more experience they start jumping around to better jobs for higher pay and it increases the cost structure again. We have tons of developers working in India but we're now starting to move work to China where it's even cheaper now that a 'middle class' has arisen in India and they just use us as a stepping stone to higher pay.

It's the constant race around the world for the cheapest resources. Hey maybe one day the US will be the cheapest once we're all living in cardboard boxes.