TCS announces double-digit salary hike

India’s biggest IT company, Tata Consultancy Services (TCS), has announced a double-digit salary hike for high performers starting in April. Milind Lakkad, Chief HR Officer, expressed the company’s satisfaction in continuing its annual tradition of rewarding top achievers with significant raises. Salary increments, based on performance, will happen between 4.5 per cent to 7 per cent, with exceptional performers receiving double-digit increases. TCS plans to onboard approximately 40,000 freshers this year, many of whom have already joined from previous cycles.

Despite a decline in hiring during the last quarter, TCS witnessed a reduction in its headcount by 1,759 employees, totaling 601,546 at the fiscal year’s end. This decrease follows a previous drop of 5,680 employees in the third quarter. However, despite these reductions, TCS concluded the fiscal year with 13,249 fewer employees compared to the previous year, alongside a 3.5% revenue growth.

The company’s Chief HR Officer, Lakkad, attributed the vibrant atmosphere in TCS delivery centers to reduced attrition at 12.5%, successful campus hiring drives, increased customer interactions, and employees returning to office premises.

TCS is actively recruiting from priority campuses and organizing national qualifier tests to usher in a substantial number of new recruits. N. Ganapathy Subramaniam, the Chief Operating Officer, will retire after 40 years of service, with his responsibilities being redistributed among senior colleagues as TCS opts not to immediately fill the COO position.

K Krithivasan, TCS’s chief executive, emphasized the company’s focus on efficiency and optimized deployment of associates, stating that revenue growth and headcount are not directly linked. The ongoing training process for new hires typically takes six to nine months before deployment, as mentioned by Krithivasan.

The IT sector, as per Teamlease Digital, is expected to witness minimal or negative net additions in the current fiscal year, aligning with trends seen in major IT firms.

Key highlights for TCS in the fiscal year 2023-24 include an employee headcount of 601,546, diversity with 152 nationalities represented, and 35.6% female workforce, with an IT services attrition rate of 12.5%.

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