Menu
Tata gives employees anniversary bonus, cuts into profits

Tata gives employees anniversary bonus, cuts into profits

India's largest outsourcer said its business had grown well in the first quarter

India's outsourcing industry needs to hire and retain staff in big numbers to keep business humming, so for the 10th anniversary of its initial public offering, Tata Consultancy Services announced a one-time "special reward" for its employees.

As a result, Tata took a dip in profits in the first quarter to give out a large bonus.

TCS said all its employees worldwide, who have completed at least one year of service, would be eligible for the special bonus, with each employee paid one week's salary for every year of service in the company.

At the end of the quarter TCS had 319,656 employees. The bonus will cost the company about US$423 million.

The reward to employees acknowledges their role "in building TCS into one of the most respected and valued technology services companies in the world," CEO N. Chandrasekaran said Thursday.

India's largest outsourcer, TCS went public in 2004 on Indian stock exchanges. It now has the highest market capitalization on local stock markets.

The company added clients across all sectors in the quarter, while business from all industry verticals that it addresses grew by double digits. Revenue for the quarter was $3.9 billion, up 11.3 percent from the same quarter last year. Excluding the cost of the bonus, net profit grew 10.45 percent to $951 million. Actual profit dropped 28 percent to $621 million as a result of the bonus.

North America accounted for over 52 percent of TCS' revenue in the quarter, followed by the U.K. which made up for nearly 16 percent of the revenue.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Tags outsourcingbusiness issuesservicespersonneloffshoringTata Consultancy Services

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments