Digital, performance take top floor in TCS’ new pyramid

BENGALURU | MUMBAI: Tata Consultancy ServicesNSE 1.00 % has brought in about 30,000 fresh graduates over the six months ended September, eclipsing the net hiring of the previous financial year, as it rebuilds its pyramid model with a large number of younger engineers with digital skills to reduce costs and improve margins.

India’s largest software service exporter is also increasing the proportion of variable pay that’s linked to performance for experienced engineers as part of the rejig.

The process — called pyramid rationalisation — is predicated on having a larger number of employees with less than four years of experience and fewer employees with progressively more experience, and as a result, a reduced salary bill. The employee pyramid is the cornerstone of Indian IT’s margin management.