Engineering Campus Placements: Mass Recruiters - why do they do it

A lot of people, especially engineering students, often wonder why companies like TCS, Cognizant (CTS), Infosys, Wipro and Accenture - a.k.a. the mass recuiters - often hire so many people. Even if they pay them significantly small salaries, with the large number of people that they hire, it is only logical to ask - what do they do with such man power.

Another question that comes to mind is that if they hire all these people every year, how do they manage to keep their costs low? Do they keep firing employees in large numbers too?

In this article, I tell you the truth about mass recruitment processes. And it's not going to be pretty.
Big IT companies like TCS, Cognizant, Accenture etc hire in huge numbers every year - they get fresher's, who are willing to learn, who do not need to be paid much and who can be put into any roles they want. Often these people out of college are in need of money (for further education, College loans etc). This makes them grab on to whatever job they can get. This process results in thousands of new recruits every year.
Now, no matter how big a company is, they do not need these many people to run the company. There is simply not enough work for all of them. Now, 2 questions arise:

1. What to do with all the extra employees whom we will have to pay?
2. Why did the company hire them in the first place, if they know they won't need that many?

Ill answer both of these one by one.
What to do with all the extra employees whom we will have to pay?
This is where these companies bring in the 'training phase'. They start a training period for around 6 months where the new hires are taught the necessary skills that they would be required to use if they work for the company. After this period there is a test. This is where things get interesting- if you pass the test, you do not get anything extra -you just retain your job and are assigned a team/project. However, if you fail, you're kicked out of the company. See how this benefits them? They paid you only for the duration of the training and once they kick you out they're done with you.
Now coming to the second part,
Why did the company hire them in the first place, if they know they won't need that many?
The answer is simple - TAXES.
Since these companies are creating such a large number of jobs in the country, they get massive tax benefits from the government. This helps them consolidate their earnings and save millions and millions of bucks. Another party this helps are the colleges where they hire from. Once their students get placed, the colleges can all brag about how they gave results of 100% placements etc etc.
Amidst all this, who suffers?
The companies don't.
The colleges don't.
The government officials or HR managers don't.
The student/fresher suffers.
And this dear friends is the sad reality.