Tech Mahindra, which is part of the Mahindra Group, is working towards reducing the workforce in its business process services (BPS) wing by 5,000 in 2021. The BPS arm of the Indian IT company currently has a 38,000 strong workforce. However, with artificial intelligence and automation rendering many roles redundant, the Company is now focussing on ways to eliminate the “non-linearity” that exists between revenue growth and total workforce strength.
Interestingly, Tech Mahindra posted strong revenues in the December quarter of 2020. It experience a 14.3 per cent spike in its consolidated net profit at Rs 1,309.8 crore in the third quarter of FY21 as compared to Rs 1,145.9 crore in the same period in the previous year. Its revenue from operations was almost flat at Rs 9,647.1 crore in the quarter under review from Rs 9,654.6 crore during the same time a year ago.
In the October-December quarter, Tech Mahindra let go almost 2,500 people from its workforce, with maximum loss in headcount happening in the BPS wing.
Quite recently the Company had reportedly announced its intention to hire fresh engineering and management graduates along with experts in new-age skills. In fact, it had identified 190 skills in which it requires more hires. It had revealed its plans to recruit at least a hundred MBA graduates, and those with consumer expertise as well as suitable people to occupy senior roles in cloud and AI.
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