Tata Consultancy Services (TCS), India’s leading IT giant, has decided to defer its scheduled annual wage hikes that typically begin in April. Company executives cited macroeconomic uncertainty and rising concerns over the evolving US tariff landscape as primary reasons. Milind Lakkad, the outgoing Chief Human Resources Officer, mentioned that the decision would be reviewed later in the financial year once the situation stabilizes.
This move mirrors actions taken during the COVID-19 pandemic, reflecting a broader caution across the IT sector. Firms are actively optimizing operations and expenses as global clients delay discretionary spending.
Impact on Employee Compensation
Despite pausing the annual hikes, TCS confirmed that variable pay will be disbursed as per performance metrics. For Q4, 70 percent of employees will receive full variable payouts, while others will get performance-linked compensation. While employees might be disappointed by the deferment, TCS aims to maintain transparency and regular payouts during this phase.
Hiring Continues Steadily
Interestingly, TCS is not slowing down on talent acquisition. The company reaffirmed plans to hire 42,000 engineering graduates this year, keeping its campus hiring momentum intact. In Q4 alone, TCS onboarded 625 new employees, increasing its total headcount to 607,979. The net addition for FY25 stood at 6,433, reversing last year’s dip.
Attrition crept up slightly to 13.3 percent in Q4 from 13 percent in the previous quarter. However, the company proudly confirmed it successfully onboarded all 42,000 freshers targeted for the year.
Quarterly and Annual Performance Snapshot
TCS posted a net profit of ₹12,224 crore for Q4 FY25, a 1.7 percent decline compared to the previous year’s same quarter. However, revenue rose by 5.3 percent year-on-year to ₹64,479 crore. For the full fiscal year, the company saw a 5.8 percent rise in net profit at ₹48,553 crore and a 6 percent revenue jump to ₹255,342 crore — crossing the $30 billion mark.
Strong Order Book Amid Client Caution
Despite cautious client behavior, TCS secured a healthy total contract value (TCV) of $12.2 billion for Q4 FY25. This reflects solid demand resilience even in uncertain economic environments, though delays in discretionary IT spending remain a concern moving forward.
TCS’s focus on cost control, strategic hiring, and contract growth paints a balanced picture of resilience and caution in today’s global tech climate.
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