Tata Elxsi is reviewing how responsibilities are distributed across experience levels, with plans to shift selected tasks from senior employees to trained junior staff over the next six months as it seeks to improve workforce utilisation and manage employee costs.
The engineering and design services company is focusing on better deployment of its existing workforce, alongside training and more selective junior-level hiring, to improve productivity and support margins.
During the company’s Q2 FY27 earnings call, Manoj Raghavan, CEO and managing director of Tata Elxsi, outlined plans to reassess work allocation between senior employees and technical specialists and junior staff. The company has been training junior employees to take on some of these responsibilities and will evaluate the impact of the changes over the coming six months.
Employee utilisation stood at around 78 per cent during the quarter, leaving scope for improvement.
The review comes as Tata Elxsi balances salary increases with its focus on cost control. The company implemented salary hikes during the September quarter, but operational efficiencies and lower one-time expenses helped offset the resulting increase in employee costs.
Rana indicated that the annual salary revision cycle had been completed and employee costs were expected to remain largely stable for the rest of the financial year, apart from selective investments. The company expects operational efficiencies to support margins in the coming quarters.
At the same time, Tata Elxsi continues to face demand for specialised talent, particularly in engineering research and development (ER&D), as global capability centres expand. Raghavan highlighted the importance of retaining skilled employees in this segment even as the company seeks to improve productivity across its workforce.
Tata Elxsi reported revenue from operations of Rs 1,055 crore in Q2 FY27, registering 2.3 per cent growth in constant currency. Its workforce strategy will now focus on improving utilisation, developing junior employees for broader responsibilities and managing costs while retaining talent in areas where demand remains strong.
