WORST IS OVER FOR TCS, CONFIRMS CHIEF FINANCIAL OFFICER; WILL IT CHANGE THE CURRENT MODEL? DETAILS HERE! 

After the first quarter of FY2020, Tata Consultancy Services (TCS) announced that the company will open lateral hiring and will go ahead with fresher hiring in geographies such as the US. 

This big announcement comes as a surprise to freshers and employees as most of the IT companies are freezing hiring to cut costs. 

After TCS reversed its first quarter, the company said that it would honour all the offers, there would be a freeze on lateral hiring at the back of COVID-19. Meanwhile, V Ramakrishnan, Chief Financial Officer feels that "the worst is over, at least for TCS," he said during a recent interaction with Moneycontrol.

Further sharing his opinion, Ramakrishnan says, his ideas come from the strong order pipeline, heightened conversation with customers and also the kind of opportunities they are seeing. Talking about the changes that have taken in the last three months; Ramakrishnan explained that even amid the pandemic, countries across the world have been opening up the economy in a calibrated manner. 

“As economies open up and different sectors start opening up, it (business) should slowly start coming back to normal,” he said. Also, sectors such as banking, financial services and insurance (BFSI), manufacturing and essential retail are adapting to the new normal. They are also embracing the latest technologies to ensure business continuity.

Explaining in terms of technology, Ramakrishnan stated that there is a huge demand for migration to cloud, data analytics and TCS' own products and platforms such as Ignio, a cognitive automation product of TCS. “So this is where opportunities are. Pipeline, if you look at it, it is healthy and it has a mix of large as well as small deal and that also gives us confidence,” he added as per MoneyControl. 

Giving an insight into the hiring process, Ramakrishnan said TCS is going ahead with its fresher hiring in geographies such as the US though the numbers will be smaller. “As far as laterals are concerned, they will be selective, depending on the requirement and markets where there is demand. Right now we don’t have a specific plan on a number."

Highlitening about other factors like visa issues; according to Ramkrishnan, the US is the most innovative country in the world right now. With the H-1B visa ban till December, the US government could bring challenges in the long-term. 

“That is primarily because they have invested in meritocracy and also because of opportunities that have been made available for entrepreneurs and for the students for their higher education STEM education. If we have constraints on that, it is going to affect the technological leadership, our customers and it will also affect people like us,” Ramakrishnan said. 

With this visa ban, Ramakrishnan pointed out that the company has always found a way to help employees. “But is it the most optimum way to do it? Perhaps not,” he said.

Meanwhile as per CEO Rajesh Gopinathan, the company has better visibility now and expects recovery from the third quarter onwards.