Tata Consultancy Providers (TCS) has deferred its annual wage hike resolution for FY25, citing world financial uncertainty and stalled deal closures, in a uncommon transfer that underscores the deepening pressure within the tech job market.
India’s largest IT providers agency normally begins its wage hike cycle on April 1, however this 12 months it has hit pause — with no readability on when the hikes will resume.
“We haven’t been capable of take a choice but on wage hike cycle,” mentioned Chief HR Officer Milind Lakkad through the Q1FY26 earnings name on July 10. “An replace will come as soon as the state of affairs improves.”
TCS’s prime brass cited a sluggish macroeconomic surroundings, cautious buyer sentiment, and geopolitical instability as key causes for delayed shopper choices and paused tasks.
The agency’s income for the quarter slipped 1.6% sequentially to ₹63,437 crore, whilst web revenue rose 4.4% on account of one-time tax positive factors and venture financial savings.
CEO Ok Krithivasan pointed to “intensified delays” in discretionary tech spending and venture kickoffs, blaming world conflicts and provide chain volatility. “Demand contraction continues on account of world disruptions,” he mentioned.
The freeze on wage hikes is important in an business the place annual raises are a close to certainty. It displays a bigger pattern of constrained progress and tightening budgets throughout the IT sector.
TCS added 5,090 workers on a web foundation this quarter, taking its complete headcount to six,13,069. However its potential to soak up the 42,000 recent engineering graduates it employed final 12 months has been weakened by the downturn.
Whereas the corporate is sticking to its FY26 hiring goal of 40,000 graduates, Lakkad hinted at potential recalibration relying on enterprise efficiency. “Hiring shouldn’t be related to quarterly progress,” he famous.
Regardless of subdued topline figures, TCS stays targeted on long-term planning, whilst short-term uncertainties cloud compensation and onboarding plans.
