TCS Limits Fresher Offers to 25,000 Amid Demand Uncertainty, Hires Tied to Market Shift

TCS has announced it will issue 25,000 fresher offers in the current fiscal year. The company stated that future hiring plans are heavily contingent upon the evolving demand scenario.

The largest information technology services company previously hired 44,000 freshers in FY26. This marked one of the highest recruitment figures among any private sector employer in the country, despite facing headwinds.

Company's Hiring Trajectory and Future Outlook​

K Krithivasan, the chief executive and managing director, confirmed the 25,000 freshers offers for FY27. He added that increased clarity regarding demand would be the key determinant guiding any further hiring initiatives.

Historically, the firm has maintained a consistent pattern of hiring 40,000 or more freshers every fiscal year for the last three years.

Strategic Focus Shifts From Freshers to Experience​

When questioned about potentially increasing reliance on lateral hires, the CEO provided a clear strategic rationale. He noted that freshers require up to nine months of dedicated training before they can contribute effectively on a project floor.

Conversely, lateral hires can begin delivering immediate value, suggesting a tactical shift in manpower utilization. Business needs, he clarified, will primarily influence the company's overall hiring strategies.

Addressing Workforce Adjustments and Restructuring Fears​

The CEO addressed concerns regarding potential large-scale restructuring, contrasting it with the significant layoffs that occurred in FY26, where at least 12,000 staffers were let go.

Krithivasan managed to keep his response general, assuring that employees can pursue "thriving careers" within the organization if they maintain strong performance levels.

Moreover, the CEO denied that the integration of Artificial Intelligence (AI) technologies was responsible for last year's departures. Instead, he attributed the necessity of letting go of people, particularly senior-level talent, to a shift in how project execution styles were being approached.

Project Pipeline Stability Bolsters Confidence​

Regarding the overall business environment, Krithivasan classified the project pipeline as "stable," a descriptor he quickly underlined as being positive for the current macroeconomic climate.

The firm sees encouraging signs of improvement on the discretionary demand front. He observed that the emerging demand is diversified across various segments and geographies. This new demand includes key areas such as cost optimisation and transformation deals.

Growth Drivers in Deal Bookings and Revenue​

The company reported booking a total contract value of USD 40 billion for FY26. Critically, the rate of converting these new contracts into actual revenues has seen an uptick, according to the CEO.

A major tailwind mentioned was the tendency for customers to commit a higher proportion of work through new deal signings. This is leading to a positive migration of customers into higher revenue brackets.

Investment Strategy: Acquisitions and Partnerships​

On the investment front, Krithivasan detailed the company's forward-looking expenditures. These investments encompass potential acquisitions aimed at expanding corporate capabilities.

Strategic partnerships, such as the recent collaboration with AMD, and continued investments in its workforce are also key components of the future growth strategy.

Samir Seksaria, the chief financial officer, further emphasized the commitment to expanding profit margins. He stated that the firm will focus on levers such as utilization rates, which proved beneficial in FY26.