India’s largest IT services company, Tata Consultancy Services (TCS), has rolled out salary increments for 80% of its employees, signaling strong business confidence and a renewed focus on talent retention. Alongside the hike, TCS also revealed plans for a revamped hiring model aimed at improving agility and aligning with evolving market needs.
Salary Hikes Amid Market Caution
Despite a cautious hiring environment across the tech sector, TCS is bucking the trend. The company announced that a majority of its workforce—nearly 80%—will receive performance-based salary increases in the current review cycle.
This move is seen as a strategic step to boost employee morale, especially in an industry where layoffs, delayed appraisals, and cost-cutting have become more common. TCS stated that it remains committed to investing in its people and recognizing performance even in a volatile macroeconomic landscape.
Introducing a New Hiring Model
In addition to increments, TCS is reshaping its hiring strategy. The company will move away from traditional bulk hiring models and focus on a more agile, skill-based recruitment approach. The goal is to onboard talent that aligns closely with business requirements and evolving client demands.
Under the new model, TCS aims to:
- Prioritize domain-specific and digital skillsets
- Increase focus on lateral hiring for niche roles
- Reduce dependency on mass campus hiring
- Encourage internal upskilling and mobility
This marks a shift toward quality over quantity in hiring, ensuring the right talent is matched with the right projects from the outset.
Focus on Utilization and Upskilling
TCS also emphasized its ongoing efforts to optimize employee utilization. With an internal talent marketplace and structured reskilling programs, the company is looking to fill more roles through internal talent before going to market.
The approach is expected to improve workforce agility and reduce bench time, all while giving employees opportunities to grow into new roles.
Industry Implications
TCS’s move sets a positive tone for the IT sector, especially as peers continue to navigate uncertain demand cycles. The combination of rewarding performance and modernizing hiring highlights a long-term view focused on sustainable growth and talent development.
Conclusion
TCS’s decision to offer salary increments to 80% of its staff, along with a shift in hiring practices, reflects its strong fundamentals and employee-first philosophy. At a time when many companies are hitting pause, TCS is moving forward—recognizing talent, fostering growth, and preparing for the next wave of digital transformation.
