Tata Consultancy Services (TCS), India's largest IT services company, announced that its hiring strategy will depend on client needs as the company invests in artificial intelligence skills, employee training, and attracting specialized talent, despite rising subcontractor costs in the second quarter.
During the reporting period, TCS hired 10,000 new employees. The total workforce as of June 30, 2026, reached 598,056 people, representing an increase of 4,258 employees.
In the first quarter, the company hired 14,000 graduates. Sudip Kunnumal, Chief Human Resources Officer, stated during the analyst call: 'We hire according to demand, and we definitely see good demand for these technologies, so we will continue to hire.'
Furthermore, the company continues to build a future-ready workforce through upskilling employees and attracting top-tier specialists. Investments in training and critical skills ensured a consistent growth in training hours by 17 percent, reaching 17.1 million hours.
Kunnumal also noted that the company continues to attract both experienced and young professionals. He emphasized: 'Our hiring strategy continues to balance experienced personnel, early career talent, and internal competency. As client demand changes, we are focused on strengthening AI and domain expertise, improving readiness for adoption, and investing in continuous learning. Over the last year, we have significantly expanded our technological capabilities and AI capabilities for large-scale training and reskilling initiatives.'
TCS management also reported that strategic partnerships, Mergers and Acquisitions (M&A) initiatives, and hiring specialized talent were among the priority investment areas in the second quarter.
Samir Saxaria, CFO of TCS, stated: 'As we build future capacity and navigate the demand transition period, we invested in a larger reserve and increased subcontractor hiring to meet short-term skill requirements and execution needs.'
TCS's spending on subcontractors increased. The share of subcontractor expenses was 6.8 percent of revenue, compared to 5.9 percent in the first quarter of FY27. The need for more subcontractors may also be related to visa restrictions in the US.
Meanwhile, the quarterly attrition rate stood at 13.3 percent.