Attrition was lower in tier two cities
IT services company Tech Mahindra added 14,930 employees for the quarter ending September 2021 as the demand for technology services continue to increase.
With the addition, the company now employs 1.41 lakh people.
While the company did not quantify the fresher intake for the year, the hiring strategy is likely to continue in the wake of the robust demand environment, and rising attrition. Its attrition soared to 21 percent, up from 17 percent in the last quarter.
The company added 5,200 employees in the previous quarter ending June 2021.
During the earnings call on October 25, CP Gurnani, CEO & MD, said, “It is a fairly complex environment, because as you know that the demand is coming from the corporates, global delivery centers and others.”
This is resulting in attrition, which is higher in the Indian cities such as Bengaluru or Hyderabad, and much lower in cities such as Nagpur based on the analytics done by the company. “So, we are obviously trying to see how to grow our business in tier two cities. And we are also looking at providing business continuity for a particular project not only from one location to one from multiple locations,” Gurnani said.
The company is also looking at attrition in the coming quarters, and has plans to hire or re-skill or upskill employees a little ahead to manage the supply-chain equation, he added.
Tech Mahindra reported $1.47 billion in revenues for the quarter ending September, growth of 6.4 percent on a sequential basis. The company closed $750 million in net new deals. CP Gurnani, CEO & MD, said it was the highest sequential growth in a decade the company had seen.
The 5G tech team
One of the key growth areas for the company include 5G, where the company has made significant investments.
Vivek Agarwal, president – BFSI, HLS, and corporate development, Tech Mahindra, said during the company’s Q2 FY22 results that the company is looking at all possible avenues for bringing in the right skill set in sectors such as 5G. “We obviously have a very large pool of people reskilling in the emerging 5G technologies area.”
“Are we necessarily hiring from engineering colleges and looking at training versus hiring from telecom operators? I think it’s a mix right. People come in with industry experience and technology expertise. So it’s our ability to put all of that together – domain expertise, engineering expertise to be able to service our customers. So that’s the approach we’re taking here to fulfill the needs and demand in the 5G ecosystem.”
