Tata Consultancy Services Defers Salary Hikes

Tata Consultancy Services, India's largest IT services firm, has deferred annual salary hikes for its employees, which were scheduled to begin in April 2025. The decision was attributed to global economic uncertainty and concerns over tariffs, particularly those involving the United States. Milind Lakkad, Chief Human Resources Officer, stated that the company would decide on wage hikes later in the year based on business conditions. CEO K. Krithivasan noted delays in discretionary spending due to ongoing tariff wars. Despite the salary freeze, Tata Consultancy Services will continue quarterly variable payouts and plans to maintain campus hiring, aiming to recruit around 42,000 fresh graduates in FY26. The company reported mixed Q4 FY25 financial results, with a 5.3% year-on-year revenue increase but a 1.7% dip in net profit, missing analyst expectations. Attrition also slightly increased to 13.3%. The move by Tata Consultancy Services is seen as a cautious approach, echoing a similar decision during the COVID-19 pandemic, and industry watchers expect rivals like Infosys and Wipro to potentially follow suit. Additionally, Tata Consultancy Services announced leadership changes, appointing Aarthi Subramanian as COO and Mangesh Sathe as Chief Strategy Officer.