Mumbai, September 14: Tata Consultancy Services (TCS) has been named as the firm where employee satisfaction is higher as compared to peers. UBS, in its latest report, has mentioned that other peers such as Infosys and Wipro have seen very high attrition rates in the past few years. According to the report, attrition rate in IT major Infosys increased year-on-year (YoY) as about 37,915 people left the company in FY17. The report further informed that consolidated attrition rate from the company was at 19.2% for the year ended March 2017 as against 18.7% for the year ended March 2016.
As per market trends, TCS shares were trading at Rs 2,512, up by nearly 1% since the previous close. The research report says that TCS is the best place to address the transformation to digital services. The UBS report also makes it clear that it has a buy call on the TCS share with a target price of Rs 2,800. It is believed that since there is no issue of internal challenges in TCS and the employee satisfaction is higher, this factor can help the company in gaining market share despite trading low.
Infosys, India’s second largest IT services have been facing issues ever since MD and CEO Vishal Sikka’s sudden resignation and exit of four board members, including Chairman R Seshasayee. They blamed Murthy’s “misguided campaign” for Sikka’s abrupt exit. The Bengaluru-based IT firm has been in the eye of a storm over the past few months as founders and erstwhile board members have been clashing over allegations such as corporate governance lapses and irregularities in Infosys’ USD 200-million Panaya acquisition. Infosys shares have plunged more than 10% in the last one month while TCS shares are up by more than 5% in the year. Bowing to the demands of co-founders and large institutional investors, Infosys named co-founder Nandan Nilekani as its new Non-Executive Chairman on August 24. However, the tensions between the two camps do not seem to be subsiding as Seshasayee launched another offensive last week against alleged ‘personal attacks’ by Murthy.
As per reports, TCS, on Tuesday regained its status as the country’s second most valued firm in terms of market capitalization, overtaking HDFC Bank. Earlier in the day, HDFC Bank had surpassed TCS to become the country’s second most valued firm. At the close of trade, TCS’ market valuation stood at Rs 4, 76,045.04 crore, which was Rs 2,578.86 crore more than HDFC Bank’s Rs4,73,466.18 crore valuation