TCS delays salary hikes amid global uncertainty

IANS April 12, 2025 176 views

Tata Consultancy Services is taking a cautious approach to salary increments amidst global economic uncertainties. The company has maintained its strategic hiring of fresh talent, onboarding 42,000 trainees in the fiscal year. Despite a slight decline in net profit, TCS continues to focus on acquiring niche technological skills and remains optimistic about future opportunities. The IT giant is adapting its workforce strategy to align with evolving business environments and technological advancements.

"We will decide during the year, considering the uncertain business environment." - Milind Lakkad, CHRO, TCS
Mumbai, April 12: IT services major Tata Consultancy Services (TCS) has delayed salary hikes, as the management remained uncleared on the increment cycle amid global uncertainty arising due to US tariffs.

Key Points

1

TCS adds 42,000 freshers in FY25

2

Attrition rate increases to 13.3%

3

Net profit declines slightly to Rs 12,293 crore

4

Revenue grows 5.3% year-on-year

TCS typically revises the wages of its staff in April every year. The employee count at the end of fiscal 2025 stood at 6,07,979, as the company added 625 employees in the fourth quarter. In the entire financial year, the company hired 42,000 freshers.

The IT major now plans to make the salary revision decision based on the evolving business environment as uncertainty looms the sector.

The attrition rate in the fourth quarter for TCS increased to 13.3 per cent from 13 per cent in the last quarter.

According to Milind Lakkad, chief human resources officer at TCS, "We have onboarded 42,000 trainees in FY25 and the FY26 number will be similar or a little higher. Regarding the wage hikes, we will decide during the year, considering the uncertain business environment."

Lakkad further stated that while hiring from the campus remains strategic for the company, the new net additions will depend on the overall business environment and the skill requirements.

TCS is also looking to hire talent for niche and newer technology skills and plans to scout talent from across geographies, even international.

Lakkad also said that the company doesn't see AI impacting hiring, as more people would be required with AI for business programmes bringing in new opportunities.

In the December quarter (Q3 FY25), TCS reported a reduction of 5,370 employees in its workforce.

The company's overall headcount had declined in FY24 -- the first such drop since it was listed in 2004. In contrast, TCS had added 22,600 employees in FY23 and over 1.03 lakh in FY22.

The IT major's consolidated net profit for Q4 fell nearly 2 per cent year-on-year (YoY) to Rs 12,293 crore. In the same quarter last year, the company had reported a net profit of Rs 12,502 crore.

Revenue from operations, however, grew 5.3 percent YoY to Rs 64,479 crore for the quarter ending March 2025, up from Rs 61,237 crore a year ago.

Reader Comments

R
Rahul K.
This is disappointing but understandable given the global economic climate. Many IT professionals were counting on these hikes. Hope TCS revisits this decision soon! 🤞
P
Priya M.
As a TCS employee, I appreciate the transparency about the delay. The market is tough right now and I'd rather have job security than forced hikes that might lead to layoffs later.
A
Amit S.
While I understand the business reasons, TCS should consider that delaying hikes while continuing to hire 42k+ freshers sends mixed signals to existing employees. The attrition rate speaks volumes.
N
Neha P.
The focus on niche skills and international hiring is interesting! Maybe this is a good time for IT professionals to upskill in AI/ML domains. 🚀
V
Vikram J.
Revenue grew but profits fell - explains the cautious approach. The entire IT sector is going through a transformation phase. Let's see how this plays out in coming quarters.
S
Sneha R.
First time in 20 years that headcount dropped! That's significant. Hope the new focus on quality over quantity works out for both employees and the company.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Your email won't be published

Tags:
TCS Salary Hikes IT Services Milind Lakkad Tech Hiring Indian IT Sector
You May Like!