Consulting Services TATA (TCS) have postponed their annual decision to increase wages for FY25, citing global economic uncertainty and stalling in closing contracts, in a rare move that highlights deepening the deepening of the technological labor market.
India’s largest IT service company usually begins its salary increase on April 1, but this year hit a break – without clarity about when pedestrians continue.
“We have not yet been able to make a decision on the cycle of salaries,” said Human Resource Officer Milind Lacad during a call for Q1FY26 on July 10. “The update will come after the situation has improved.”
Top TCS brass cited a weak macroeconomic environment, a cautious sense of clients and geopolitical instability as key reasons for postponing client decisions and paused projects.
The firm’s revenue for the quarter dropped by 1.6% to £ 63,437, even when net profit increased by 4.4%, as a result of one -time tax gains and project savings.
Chief Executive Officer K Critivasan pointed to “intensified delays” in discretionary spending of technology and launching projects, blaming global conflicts and volatility of the supply chain. “Demand contraction continues as a result of global disorders,” he said.
Freezing wage increases is significant in the industry where annual increases are close security. It reflects a larger trend of limited growth and tightening of budgets through the IT sector.
TCS added 5,090 employees on a net basis this quarter, taking over the total calculation of 6.13.069. But its ability to absorb 42,000 fresh engineering graduates hired last year is weakened by the fall.
While the company adheres to its purpose of employment FY26 of 40,000 graduates, Lacad has hinted at potential recalibration depending on business performance. “Engaging should not be associated with quarterly growth,” he said.
Despite the subtle topping numbers, TCS remains focused on long -term planning, even as short -term uncertainties compensation for cloud and plans.
