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India’s TCS sees lower staff attrition and high demand for IT services – executive

MUMBAI, June 6 (Reuters) – India’s leading exporter of software services, Tata Consultancy Services (TCS) (TCS.NS), expects the rate of staff attrition to decline and demand for its services to increase to as companies continue their pandemic-accelerated digitization processes, a company executive said.

More tech talent is expected to enter the job market among startups facing funding challenges as central banks withdraw stimulus and hike rates, TCS Asia Pacific President Girish Ramachandran said Monday at the Reuters Global Markets Forum.

“Money is getting more and more expensive. There’s no such thing as free money anymore,” he said, adding that those who have been attracted to startups in recent years “will have to look for (other) options”.

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“If I look at the trajectory of the last few months, the attrition will decrease over a period of time,” Ramachandran said, ahead of Temasek’s annual Ecosperity Sustainability Conference in Singapore.

TCS’s staff attrition rate, the percentage of those retiring or leaving for other reasons, increased to 17.4% in the quarter ending March 2022, compared to 15.1% for the whole of 2021, as India’s IT services industry experiences a shortage of tech talent and high turnover.

Ramachandran, however, said India still has a large talent pool. “We just need to start looking at how to access top talent and make sure we train them, so we’re ready to deploy them.”

Despite uncertainties around a potential global slowdown, Ramachandran said demand for TCS’s software services has not faltered.

“Digitalization is irreversible,” he said, adding that he didn’t expect organizations that went digital during the pandemic to drastically reduce their tech budgets.

With the pandemic abating, Ramachandran said he expects a hybrid work environment to become the norm, especially in the tech industry.

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Reporting by Divya Chowdhury and Savio Shetty in Mumbai; Additional reporting by Nishara Pathikkal in Bengaluru; Editing by Tomasz Janowski

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