Tech Mahindra Will Have Exclusively 60% Indian Employees, Plans For Massive Hiring.

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Tech Mahindra will hire more employees for its delivery centres in Eastern Europe and Latin America in the next few years.

It aims to do so by diversifying its talent pool and tackling the talent war in India.

Proportions Of Workforce In India And Abroad

According to the firm, only 60% of its talent base will be located in India.

10% of hiring will occur in eastern Europe, 15% in Latin America, and 15% in other countries in Asia.

It wants to expand its talent pool, “Improve agility for delivering some solutions, and be closer to clients”, said CP Gurnani, chief executive officer and managing director.

A total of 126,000 people work for the company at present.

It is common for IT services companies to have 80% or more of their employees based in India.

International Presence

The Last 5 years, near-shore delivery centres have gained popularity for all IT services companies.

Europe and South America, in particular, have gained importance owing to the bilingual skills of its employees.

This, along with time zones mirroring that of the clients, makes collaboration easier.

Tech Mahindra has development centres in 20 countries, including Poland, Romania, Brazil, Mexico, and Colombia.

Diversification: A Smart Decision

Industry experts say that the benefits of this strategy outweigh the costs.

They call the decision to diversify its workforce a prudent one and provide near-shore options for its clients.

It also serves to reduce the risk of operations from the “increasingly intense Indian labor market and allows it to match one of its competitor’s advantages”, said Peter Bendor Samuel, CEO of Everest Group.

Going Back To The 90s

Gurnani compared the present talent war in India to the 90s when, in preparation for Y2K, Indian companies migrated abroad and vice versa.

He specified that in 1996 when Y2K preparedness started, Indian firms scouted internationally for talent.

He said that he wishes to bring back that approach and make his company a “very active and strong focal point for talent development.”

While the firm sought talent from South Africa and Australia earlier, it will now expand the scope globally.

To Tackle Attrition

Diversification of hiring will also serve as a buffer against attrition at 17% for the quarter ended June 30.

The company has also introduced measures to contain attrition, such as:

  • Special bonus to all employees
  • Upskilling employees
  • Increments
  • A war chest to “use as and when required for retaining people.”
  • Redeploying in upskilled projects, so employees benefit financially
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