TCS HR Head Asserts Business Model Resilience Amid New H-1B Visa Rule Implementation
Tata Consultancy Services (TCS) is confident in its adaptable business model amid recent changes to H-1B Visa regulations. The company’s HR Chief, Sudeep Kunnumal, emphasized the resilience of TCS’s operations during the recent Q2 earnings call.
Business Model Resilience Amid Visa Rule Changes
TCS has significantly reduced its reliance on H-1B visas, with only about 500 new visas issued in the past year. This change is part of a broader strategy to localize the workforce in crucial markets, particularly the United States.
Commitment to Employee Well-being
In the second quarter, TCS implemented wage hikes for over 80% of its workforce, effective from September 1. The company also increased its quarterly variable allowance, demonstrating a commitment to employee rewards.
Strategic Initiatives for Future-Readiness
- Personalized learning pathways using AI.
- Collaboration with academia to foster next-gen skills.
- Acquiring top industry talent for advanced skills.
- Localized hiring across geographies, including the US, UK, and Europe.
Workforce Restructuring and Support
TCS has released 1% of its workforce, focusing on mid- and senior-level employees with capability mismatches. The company provided a severance package of Rs 1,135 crores (approximately $136 million), alongside additional support such as counseling and outplacement services. Kunnumal highlighted that these severance terms are superior to industry standards, approached with empathy.
