There is uncertainty regarding pay hikes in TCS. According to CHRO Milind Lakkad, due to the uncertain environment, we’ll decide on wage hikes during the year. It can be anytime during the year, he said.
The decision has surely impacted the employee morale. With a strong focus on international markets, the decision is likely to impact IT sector’s overall approach to wage adjustments.
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The organisation hasn’t clarified on the percentage of hikes the employees can expect. This has raised questions about employee retention.
It has to be noted that a recession in the US has sparked a sellout in major IT stocks lately. But the recession will actually lead to outsourcing directing IT spend, according to financial analysts.
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However, TCS maintains a positive outlook for FY 2026 and feels the year would be better than FY 25, especially in international markets.
Also, the demand in BFSI (Banking, financial sector, insurance) is strong. Incidentally, BFSI remains the biggest revenue generator for TCS.
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The insurance sector is facing some problem, but BFSI accounts for more than 30%, according to a report in Mint.
