TCS Salary Hike Delay: What is happening in India’s largest IT company|
Tata Consultancy Services (TCS), India’s largest IT company, has just announced that the salary hikes that were to be implemented from April are being delayed. The company says that the global economic situation is a bit uncertain, especially because of the tariff war going on between the US and other countries. So the company is taking a cautious approach.
“When to give salary hike, we will decide in the middle of the financial year when the situation becomes more clear,” said Milind Lakkad, who is the chief HR officer of TCS.
This is not happening for the first time. Such a decision was also taken during the pandemic when global business had almost stopped.
Variable pay is still being received
The good news is that quarterly variable pay will continue. In Q4: 70% employees will get 100% variable pay and the pay of the rest will depend on business performance.
Client spending is also a bit slow
TCS CEO Krithivasan told that clients are also stopping discretionary spending right now and the ramp up of projects is getting delayed. Till there is clarity on global trade, spending will remain slow.
Hiring will continue
TCS plans to hire 42,000 fresh engineers in 2025-26. Which is almost the same number of freshers the company hired in 2024-25. 625 new employees joined in Q4 and the net headcount increased by 6,433 in the entire year, which was a drop of 13,249 in the last year. Attrition rate also increased slightly – 13% in Q3 and 13.3% in Q4.
Changes at the leadership level too
TCS has made 2 important leadership appointments:
1 Aarthi Subramanian – New COO (Chief Operating Officer) was earlier the Chief Digital Officer at Tata sons. Who will now also become the Executive Director & President of TCS (starting from May 1).
2 Mangesh Sathe – New Chief Strategy Officer was earlier the CEO of Tata Strategic Management Group. Now they will handle global consulting and mergers & acquisitions.
What to expect next?
The company says that major changes are taking place in the tech space. That is why they are building good talent and partnerships. They say that one cannot rely only on homegrown talent, that too when there is so much global competition.
