Tech Mahindra's 'Utilization Level Back to Pre-Covid Level' Plan - How it matters to Employees?

Amid COVID-19 crisis, many Indian IT companies have planned to open lateral hiring over the next three months. The same is with Tech Mahindra, they too plan to open their hiring process soon but not before it brings its utilisation levels back up.

As per a Business Insider report, Tech Mahindra's utilisation between April to June, measures the performance of employees which was down by 1 percent. 

At a recent interview, Tech Mahindra’s CFO Manoj Bhat told Business Insider; “The first focus would be to bring that up and make it back to our levels, where we were a couple of quarters back."

Highlitening about, utilisation problem, Tech Mahindra isn’t the only company dealing with it. Even other IT majors like Infosys saw a bigger dip of 2.3 percent in the last three months. Meanwhile, analysts believe that more offshoring of deals will help the numbers come back up in the coming quarters.

Also, once utilisation jumps back up, Tech Mahindra plans to open up the doors to lateral hiring. "Much of it will demand and which sectors it’s coming from. I don’t think we’ll be hiring in advance,” Bhat further explained. 

The other factor that Tech Mahindra looked into is subcontracting costs that were also higher between April to June. Further in his interview, Bhat asserted that the sudden uptake is only due to the company’s latest acquisitions which are Cerium and Zen3. 

“In the longer run, subcontractor substitution by employees is what we’re thinking about,” said Bhat. The company may not be using its employees most efficiently, but its attrition rate has continued to improve where it settled at around 17 percent in the first quarter, which is 2 percent lower than the previous quarter, Business Insider further reported.