TCS Defers Salary Hikes Due to Global Uncertainties, Meets Hiring Target for FY25 The Indian IT services industry may brace for a challenging year ahead as the new tariffs under American President Donald Trump are likely to increase inflation in its key US market and force clients to cut spending.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
At a time when global trade wars are sending shockwaves across markets, IT services major Tata Consultancy Services (TCS) has deferred the salary hikes of its employees, typically rolled out in April.
The management said the decision to defer the hikes was on account of the macroeconomic uncertainties further intensified by the ongoing tariff war between the US and other countries.
The Indian IT services industry may brace for a challenging year ahead as the new tariffs under American President Donald Trump are likely to increase inflation in its key US market and force clients to cut spending. The recent tariff rates add to the existing delays in the decision-making cycle of clients and a cut in discretionary spend
Milind Lakkad, Chief Human Resources Officer, TCS said the hikes will be implemented later in the financial year, once there is greater clarity on the market conditions. "Because of the uncertain environment, we will decide on wage hikes during the year. It can be at any time depending on business," said Lakkad.
TCS management said during the Q4 earnings that it has met its annual target for onboarding 42,000 trainees during the FY25, which validates the company's long-term workforce planning despite some adverse short-term economic conditions.
The company's attrition rate on a trailing 12-month basis marginally increased to 13.3 per cent from 13 per cent in the preceding three months. Despite this, the headcount has risen by 6,433 in Q4 FY25 to 607,979 compared with 601,546 employees in Q3.
On Friday, shares of TCS closed down 0.43 per cent at INR 3232.30 on the BSE.
