India’s largest IT services provider firm, Tata Consultancy Services (TCS) has announced a salary hike for its employees, despite the 200-bps impact on the company’s operating margin.
TCS CFO Samir Seksaria said, “The annual pay hikes effective from April 1, would result in a 200-basis-point hit on the operating margin, which currently stands at 23.2%.” The company has given a 12-15% raise for exceptional performers in the latest annual compensation review, he added.
Along with salary increases, the IT giant has also initiated the promotions cycle.
The company was pleased to announce that during the June quarter, its attrition dipped further in Q1 and was at 17.8% for the last twelve months. And diversity 35.8% of Women employees.
K Krithivasan, Chief Executive Officer and Managing Director said, “It is very satisfying to start the new fiscal year with a string of marquee deal wins. We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies. We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximize our participation in these opportunities.”
Milind Lakkad, Chief HR Officer, said, “We remain focused on developing, retaining, and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to office to foster our culture. Our Return to Office initiative is picking pace, with 55% of the workforce already in office thrice a week.”
“We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle”, Milind Lakkad added.
“TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market-relevant skills like generative AI, cloud, data, and analytics. Our attrition continues to trend down and we expect it to be back in our industry-leading, long-term range in the second half of the year. While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year”, Milind Lakkad further added.
Tata Consultancy Services (TCS) reported its consolidated financial results for Q1FY24 the quarter ending June 30, 2023. The IT giant reported a 16.84 per cent year-on-year (YoY) rise in its consolidated net profit. But on a quarter-on-quarter (QoQ) basis, TCS’ consolidated net profit was down 2.8 per cent.
