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Tag: IT sector

  • Infosys Secures INR 14,000 Crore Contract from UK’s NHS for Workforce Management System

    In a regulatory statement on October 14, IT giant Infosys declared that it has won a £1.2 billion (about INR 14,137 crore) contract from the NHS Business Services Authority (NHSBSA) to provide a new workforce management system. The current Electronic Staff Record (ESR) system will be replaced with the data-driven personnel management platform called Future NHS Personnel Solution, which Infosys will construct under the terms of the 15-year agreement.

    With approximately £55 billion in yearly payments, the new system will continue to handle payroll for 1.9 million NHS workers in England and Wales. “The NHS is a cornerstone of life in the UK, providing vital services that touch millions every day,” said Salil Parekh, chief executive officer and managing director of Infosys. It is an honour for NHSBSA to select Infosys to implement the Future Workforce Solution and bring about generational change.

    Infosys Selected After Rounds of Procurement Processes

    According to Infosys, it was chosen following a thorough procurement process because of its track record of successfully implementing significant digital transformations, its dedication to operational excellence, and its user-centric design methodology. Parekh said that Infosys will develop a solution that not only boosts productivity now but also equips the NHS for the future thanks to its vast experience in digital transformation and its artificial intelligence (AI) platform, Infosys Topaz.

    In line with the NHS 10-Year Health Plan, the Future NHS Workforce Solution seeks to create a workforce that is up to date and prepared for the future by investing in digital infrastructure that increases productivity and frees up medical staff to concentrate on patient care.

    Details of NHS 10-Year Health Plan

    The company said that the new platform, which is driven by AI and cutting-edge technologies, will support every stage of the employee lifecycle, from hiring and onboarding to payroll, career advancement, and retirement. It will improve the user experience for NHS employees by providing simple, AI-powered tools for workforce planning and decision-making. According to NHSBSA CEO Michael Brodie, implementing the new management system is essential to advancing the goals of the 10-Year Health Plan.

    The solution will be a strategic facilitator for creating a workforce that is prepared for the future, going far beyond simply replacing ESR. The company said that the new platform, which is driven by AI and cutting-edge technologies, will support every stage of the employee lifecycle, from hiring and onboarding to payroll, career advancement, and retirement. It will improve the user experience for NHS employees by providing simple, AI-powered tools for workforce planning and decision-making.

    Additionally, the solution will guarantee smooth connection with other NHS systems, improve operational efficiency throughout the company, and enable staff to handle their personal data more effectively.

    Quick Shots

    •Infosys
    will build Future NHS Personnel Solution, a data-driven workforce management
    system.

    •The
    new project will replace the existing Electronic Staff Record (ESR) system.

    •Infosys
    will manage payroll for 1.9 million NHS employees in England and Wales (~    £55 billion annual payments).

    •AI-powered
    platform leveraging Infosys Topaz.

  • TCS to Offer Up to 2 Years’ Severance Pay as Part of Major Workforce Restructuring Plan

    As the Indian IT giant reduces people in response to changing customer demands and increasing automation, IT juggernaut Tata Consultancy Services (TCS) is providing severance compensation of up to two years’ salary to long-serving employees whose skills no longer match corporate needs.

    In an effort to become more flexible and future-ready in the face of swift technological advancements, Moneycontrol announced in July that it will lay off 2% of its personnel, or around 12,000 workers, over the course of the following year.

    Restructuring Plan Aims to Affect Less Skilled Employee

    According to a number of media sources, the restructuring mostly impacts workers whose skills have become outdated or who haven’t upgraded to suit changing customer needs. Employees in this category are eligible for a three-month notice period under the programme, followed by a severance compensation that, depending on duration, can range from six months to two years’ salary.

    According to a media report, six months is the lowest amount of severance pay in this category. Those who have been looking for a job for more than eight months are given a more basic package that includes three months’ worth of notice pay.

    According to the company’s statement, individuals impacted by our recent drive to realign talents have received the care and assistance that is appropriate for them in each of the unique circumstances, in accordance with our company’s values.

    TCS Also Offering Career Transition

    Additionally, the exporter of IT services offers outplacement services to assist with career transitions, paying agency fees for three months, and occasionally longer for junior associates. According to insiders, the business occasionally also provides funding for access to therapists or mental health help through its “TCS Cares” programme.

    Additionally, according to sources, the corporation is offering early retirement choices to workers whose retirement is due. These workers will have access to all retirement benefits, including insurance, as well as extra severance compensation that will vary in value from six months to two years’ salary, depending on their employment.

    According to reports, the majority of the labour modifications were finished in August and September amid considerable discontent. Employees without roles are still only being reviewed in isolated circumstances; they have the opportunity to join the Resource Management Group (RMG) to investigate roles throughout the organisation.

    Quick Shots

    •Around 2% of
    the workforce (around 12,000 employees) to be laid off over the next year.

    •Restructuring
    primarily affects employees with outdated skills or those not aligned with
    changing client demands.

    •Impacted
    employees get a 3-month notice period plus severance pay ranging from 6
    months to 2 years’ salary, depending on tenure.

    •6 months’ pay,
    while those job-hunting over 8 months receive a basic package including
    notice pay.

    •TCS
    offering career transition support, including outplacement services and
    paying agency fees for 3+ months.

  • Ex-Google CEO Criticizes Work From Home, Says it’s “Killing Growth” and Affecting Work-Life Balance

    According to Business Insider, former Google CEO Eric Schmidt has expressed concerns about the expanding trend of flexible employment once more, stating that it may be eroding the tech industry’s competitive advantage. Schmidt said in an interview with the “All-In” podcast that working from home hinders learning and that placing too much focus on “work-life balance” could hurt competitiveness.

    Schmidt asserted that success in the tech industry necessitates making compromises, pointing out that crucial components like innovation, mentorship, and teamwork suffer in remote settings. The comments reaffirm Schmidt’s earlier criticism of Google’s flexible work rules, according to Business Insider. He said last year that the company’s remote work culture was one of the reasons it was lagging behind smaller, quicker-growing AI startups.

    Even though he later changed his mind, his most recent remarks show that he still believes that face-to-face collaboration is crucial for high-achieving teams.

    Schmidt Advocates Work From Office not WFH

    Schmidt stated earlier this month at the All-In Summit that he is not in favour of working from home. His remarks were featured in an episode of the “All-In” podcast that aired on September 24.

    Consider a 20-something who needs to understand how the world functions, Schmidt said, adding that during his early career at Sun Microsystems, he gained a lot of knowledge by listening to his more senior colleagues quarrel. “How do you recreate that in this new thing?” he wondered.

    Schmidt stated that he supports work-life balance and that this is the reason why people are employed by the government. “If you’re going to be in tech, and you’re going to win, you’re going to have to make some tradeoffs,” he stated.

    Schmidt Praises China’s Work Culture

    Although it is legally illegal, China’s demanding “996” work culture—which operates from 9 am to 9 pm, six days a week—is a major competitive threat to the US tech industry, as the former CEO of Google pointed out.

    Eric Schmidt pointed out that even though China has rules prohibiting such long workdays, many businesses and workers continue to follow this taxing schedule, which puts a lot of pressure on US companies to compete. Schmidt’s opinions coincide with the IT sector’s ongoing struggle to manage the long-term effects of the remote and hybrid work arrangements that were implemented during the pandemic.

    Quick Shots

    •Schmidt
    argues that remote setups limit innovation, collaboration, and learning
    opportunities, especially for young professionals.

    •He
    advocates in-person collaboration as vital for building high-performing teams
    and maintaining industry leadership.

    •Schmidt
    believes success in tech requires sacrifices, suggesting work-life balance is
    less compatible with high growth.

    •He warns
    that China’s intense work ethic (9am–9pm, 6 days/week) poses a strong
    competitive challenge to U.S. tech firms.

    •Schmidt
    links Google’s slower growth to remote work policies, contrasting them with
    smaller, fast-growing AI startups.

  • Accenture Plans New Andhra Pradesh Campus, Aims to Create 12,000 Jobs Amid H-1B Visa Uncertainty

    According to sources cited by Reuters, the tech consulting business Accenture has revealed plans to open a new campus in the southern Indian state of Andhra Pradesh. Over time, the company hopes to add some 12,000 new jobs to its Indian workforce. Moreover, over 300,000 of Accenture’s 790,000 employees are based in India, making it the country with the largest workforce in the world.

    This comes as US President Donald Trump changed the rules, charging a $100,000 charge for new H-1B visas, which tech businesses use to hire qualified foreign workers.

    Accenture Submitted Proposal to the State Government

    The state government has received a proposal from Accenture asking for about 10 acres of property in the port city of Visakhapatnam on comparable terms, according to Reuters. The Andhra Pradesh government is eager to welcome Accenture, and while permissions may take some time, the application is likely to be approved, according to a state official.

    The report also stated that Accenture’s request is fair and that the plan will be implemented. The amount Accenture intends to invest in building the campus is yet unknown, though.

    Accenture Building on TCS and Congnizant Line

    The company’s action follows similar deals made by IT firms Tata Consultancy Services and Cognisant, who are utilising a new state policy that offers leased property to big businesses that are dedicated to job creation for just 0.99 rupees ($0.0112) per acre.

    Under the new policy, TCS and Cognisant were able to get land leases to open campuses in Visakhapatnam, which might result in the creation of almost 20,000 jobs. According to the article, TCS has set aside a little more than $154 million for its campus, while Cognisant intends to invest $183 million.

    The technology corporations are also progressively venturing into smaller Indian locations in order to capitalise on lower land, rent, and wage expenses. In contrast to the previous pattern of workers migrating to big tech hubs, many organisations are finding it easier to hire talent locally in Tier-2 cities in the post-pandemic scenario.

    Accenture Training 7 Lakh Employees on AI

    According to a Bloomberg article, Accenture Plc is educating its more than 7,000 personnel in agentic artificial intelligence in an effort to satisfy the increasing demand from clients in this area.

     “Every new wave of technology has a time when you have to train and retool,” said Julie Sweet, the CEO of Accenture, in an interview with Bloomberg Television. The ability to execute that at scale is Accenture’s primary skill.

    Quick
    Shots

    •Accenture has submitted a proposal
    for 10 acres of land to the state government, which is expected to approve
    it.

    •Over 300,000 of Accenture’s 790,000
    employees are already based in India — its largest workforce globally.

    •Expansion follows TCS and Cognizant,
    who secured leased land under a new state policy promoting job creation.

    •TCS and Cognizant plan to invest
    $154M and $183M respectively in their Visakhapatnam campuses, creating around
    20,000 jobs.

  • TCS Announces Salary Hikes for Employees to Boost Retention and Morale

    Tata Consultancy Services (TCS), the biggest IT business in India, announced its most recent round of pay increases on September 2.

    According to news agency PTI, the increases would range from 4.5% to 7% for the majority of its employees. Employees of the Tata Group company began receiving letters of increment on the evening of September 1st, and those with knowledge of the development told the news agency that the pay increases will take effect in September 2025.

    This comes after discussions on a possible pay increase were put on hold for the past two months due to uncertain market conditions. Additionally, the investigation noted that the corporation did not respond to the email enquiries.

    Pay Increases for Middle & Junior Employees

    The article claims that TCS has raised the pay of its middle- and lower-level workers. The news agency was informed that the company’s best achievers received pay increases exceeding 10%.

    Milind Lakkad, the executive vice president and chief human resources officer of TCS, stated in July that the business has not decided to raise staff salaries. “We have not yet made any decisions regarding wage hikes,” Lakkad stated during the company’s quarterly news conference.

    Attrition and Retention Strategy

    The company was working to reduce its attrition rate, which hit a two-year high at the conclusion of the first quarter of the fiscal year 2025–2026, the top human resources officer also told the media. According to Milind Lakkad, TCS attrition exceeded its comfort limit of 13% as it reached a two-year high. At the news conference, he stated, “We are working to bring it down.”

    TCS Layoffs 2025

    TCS plans to lay off 2% of its workforce this year, or around 12,000 mid- and senior-level personnel. This is at a time when many of its competitors have put compensation increases on hold or postponed them.

    Lakkad and CHRO-designate K Sudeep sent out an internal message on 6 August stating that the pay increase will take effect on September 1. In response to a question from the media, the corporation stated that it can affirm that, as of September 1, 2025, it will be raising wages for almost 80% of its employees.

    Future Outlook for TCS & IT Sector

    TCS is nevertheless hopeful about a recovery and expects demand to pick up in the second part of the year. When discussing compensation increases, Indian IT CEOs have taken a cautious stance. Salil Parekh, the CEO of Infosys, stated that the company has completed its pay increases for the fourth and first quarters of the previous fiscal year when discussing the schedule for wage increases.

    As it always does at the end of a cycle, Infosys is now starting to assess the timing for the next one. Two rises over 18 months resulted from the disruption of the normal cycle during COVID-19. Nothing is going to change. The company will continue using its current procedure and promptly disclose the upcoming cycle.

    Quick
    Shots

    •4.5%–7% for most employees; top
    performers get over 10%.

    •Around 80% of staff to benefit from
    wage increases.

    •Middle- and junior-level employees
    prioritized in this increment cycle.

    •Move aims to address rising
    attrition, which crossed TCS’s comfort limit of 13%.

  • Wipro to Acquire Harman Connected Services for $375 Million to Boost ER&D Capabilities

    On August 21, Wipro, the Bengaluru-based IT business said that it would pay up to $375 million to Harman International Industries for a 100% stake in Harman Connected Services Inc. (DTS) and its subsidiaries, as well as some other assets. Subject to US antitrust clearances and other regulatory approvals, the all-cash deal is anticipated to be completed by December 31.

    Boosting ER&D and AI-Powered Engineering Capabilities

    According to a press statement, the acquisition broadens Wipro’s capabilities and ER&D service offerings by strengthening its AI-powered digital engineering and device engineering, which includes design-to-manufacturing across the consumer, industrial, healthcare, and aerospace sectors.

    Harman Connected Services: Global Footprint and Growth

    With more than 5,600 workers spread across 14 countries—including India, the US, South Korea, the UK, Poland, and Germany—Harman Connected, a multinational provider of engineering research and development (ER&D) and information technology services, has its headquarters located in Connecticut, USA. Services accounted for almost 85% of the company’s 2024 revenues, which were $315 million in 2022, $308.2 million in 2023, and $314.5 million in 2024.

    Wipro Strengthening its ER&D Market Position

    According to Wipro, the business hopes to give customers the flexibility and accuracy of a specialised supplier as well as the reach and capabilities of a global leader by fusing Harman Connected’s individualised, high-touch delivery strategy with its global scale and technological ecosystem.

    Industry Trend: IT Firms Accelerate M&A in ER&D

    This transaction represents yet another consolidation effort in the ER&D and digital engineering services sector. According to analysts, IT companies’ inorganic strategy reflects a larger trend in the sector, whereby they may use mergers and acquisitions (M&A) as a means of overcoming slow organic growth.

    Wipro Expanding its Service Portfolio

    HCLTech purchased an automotive engineering services provider in 2023, while Infosys has already acquired two businesses to expand its ER&D service capabilities by 2024.

    To assist Olympus Corp., HCLTech will set up a special ER&D services centre. Traditionally, domain experts like L&T Technology Services, Cyient, Tata Elxsi, and others have supplied the majority of ER&D services. However, IT services providers are rapidly seeking to capitalise on this new growth area as ER&D spending has accelerated over the past two years. Cognisant, an IT company with its headquarters in Teaneck, has increased its revenue in the last two quarters by acquiring ER&D firms Belcan and Thirdera.

    Government and Market Outlook for ER&D Growth

    It’s interesting that the government has taken notice of the sector’s explosive rise. In FY23, ER&D Global Capability Centres (GCC) grew by more than 30% to around $25 billion, according to the 2024 economic survey. In contrast, the business process management (BPM) and traditional IT industries developed on a lower base but at a quicker rate in percentage terms. In FY23, GCCs in the IT segment increased by 30% to $9.7 billion, while the BPM segment increased by roughly 27% to $10.7 billion.

    Quick
    Shots

    •Transaction expected to close by
    December 31, 2025, pending US antitrust and regulatory approvals.

    •Acquisition boosts Wipro’s AI-powered
    digital & device engineering capabilities, spanning consumer, industrial,
    healthcare, aerospace sectors.

    •Harman Connected Services has 5,600+
    employees across 14 countries, including India, US, South Korea, UK, •Poland,
    and Germany.

    •Reported revenues of $315M (2022),
    $308.2M (2023), and $314.5M (2024), with 85% revenue from services.

  • Chennai IT Employees’ Union Protests Against Mass Layoffs at TCS

    According to a New Indian Express story, the Union of IT & ITES Employees (UNITE) protested Tata Consultancy Services (TCS) on 19 August in a number of Indian cities, claiming that almost 30,000 workers may be impacted by current layoffs. TCS, however, has denied the allegation, stating that the cut will only affect around 12,000 jobs, or 2% of its global workforce.

    The Centre of Indian Trade Unions (CITU) provided backing for the protests, according to the New Indian Express article. UNITE officials cautioned that the true number of layoffs may be more than reported and called for the government to step in and force TCS to reverse its decision.

    Skilled Employees Also Impacted, Say Workers

    UNITE Joint Secretary Chandra Shekar Azad told The Hindu Business Line that experience has been the only thing that those impacted have in common thus far. He went on to say that teams were becoming uncertain, as even workers with demonstrated abilities and leadership credentials were being let go.

    Alangunambi Welkin, the general secretary of UNITE, told the publication that if authorities do not intervene, the union, which has roughly 300 members, including 50–60 from TCS, intends to expand its fight internationally by working with international trade groups.

    Concerns regarding deficiencies at TCS’s Siruseri campus were also voiced by a few union members. They said that workers were forced to rely on other equipment since they had restricted access to the required upskilling tools on their own devices. These assertions have not been confirmed.

    TCS Denies Large-Scale Job Cuts

    TCS called the union’s claims “inaccurate and misleading” in a statement to Business Line. According to the corporation, changes to the workforce would only affect 2% of its workers. TCS is one of the biggest employers in the private sector in India, employing about 600,000 people worldwide. With an emphasis on cloud, artificial intelligence, and digital transformation, TCS stated that the reorganisation aims to create a “future-ready organisation”.

    Labour Authorities Step In Under Industrial Disputes Act

    The business also stated that impacted workers will receive transition assistance and severance pay. According to a previous ET story, executives from Tata Consultancy Services (TCS) informed Karnataka’s labour regulators that they are unsure of the exact number of workers who will be let go in various locations. The business will respond to an IT union’s complaint alleging infringement of labour laws.

    HR executives Mahesh GK, assistant manager, and Boban Varghese Thomas, general manager of HR, represented TCS at the meeting earlier this month. They met with representatives of the Karnataka State IT/ITeS Employees Union (KITU), which had brought up the complaint, as well as officials from the Karnataka labour department.

    A list of grievances from impacted employees was requested by labour authorities from the union. It is necessary to address the impacted employees’ basic concerns. G Manjunath, Additional Labour Commissioner (Industrial Relations), presided over the conciliation. In accordance with the 1947 Industrial Disputes Act, the matter is being examined.

    Quick
    Shots

    •Union of IT & ITES Employees
    (UNITE) staged protests in Chennai and other cities on 19 August.

    •Nearly 30,000 jobs at TCS may be at
    risk.

    •TCS denies large-scale layoffs; says
    only 12,000 jobs (~2% of workforce) will be impacted.

    •TCS calls union’s claims “inaccurate
    and misleading.”

  • Oracle Layoffs 2025: US & India OCI Teams Cut Amid AI Expansion Push

    Approximately 10% of Oracle’s Indian workforce was let go by the American computer giant, Oracle, overnight, leaving dozens of talented individuals without jobs.

    Although the business has officially stated that the cuts were due to “restructuring”, industry observers are connecting the action to a change in US policy brought about by Donald Trump’s intensified efforts to limit outsourcing and lessen reliance on H-1B visas.

    US & India OCI Teams Face Job Cuts

    Many Indians are therefore in danger of losing their employment suddenly. Oracle Cloud Infrastructure (OCI) staff in the US are still receiving layoff notices, while Oracle’s operations in India are among the most severely affected, according to Data Centre Dynamics. Cuts are also reported in Canada.

     Employees in other areas have reported being scheduled for undisclosed management meetings later this week, despite the fact that the US and India have been the first to experience job losses. This has fuelled concern that other workforce cutbacks may be imminent across Oracle’s global operations.

    Larry Ellison’s Meeting with Donald Trump

    On August 7, Larry Wilson, the CEO of Oracle, met with US President Donald Trump at the Oval Office, as per various media reports. According to reports, the conversation covered national data security concerns, technology alliances, and domestic hiring. Oracle and OpenAI announced a historic agreement shortly after, which will allow Oracle’s systems to process a significant amount of OpenAI’s data.

    The software community has expressed concern about the timing, especially as Oracle has started a massive hiring campaign at its Virginia office while reducing its workforce elsewhere. According to insiders, Oracle employees in Mexico have also received notice, and the country may experience layoffs akin to those in India. The layoffs are anticipated to have a major impact on India, where a sizable percentage of Oracle’s global staff resides.

    Oracle India had over 28,824 employees in 2024, which helped the business reach a global workforce of roughly 162,000 in 2025. The reductions will have a particularly large effect on the local talent pool because India has been a vital location for Oracle’s software development, cloud services, and technical support operations.

    In the Seattle region, which has historically served as the unit’s hub, the corporation is reportedly laying off about 150 employees. This week, affected workers received notice that their jobs were being cut. Although the precise number of job cuts is yet unknown, some with knowledge of the situation stated that performance-related concerns were a factor in the decisions. The division is still hiring for a few positions in spite of the cuts, indicating a targeted rather than comprehensive reorganisation.

    Oracle Cuts 10% of India Workforce After Trump Meeting and OpenAI Partnership Deal

    As per the recent update, Oracle, has laid off a significant portion of its personnel in India, affecting around 10% of the local workforce. There is conjecture over the motives for the abrupt reorganisation because the move coincides with the company signing a significant contract with OpenAI and having high-level discussions with US President Donald Trump.

    The timing of the layoff is what makes it more contentious. Oracle CEO Larry Wilson met with US President Donald Trump at the Oval Office just a few days before the announcement of the layoffs. The agenda covered technology collaborations, national data security, and domestic recruiting, according to a number of media reports.

    Oracle and OpenAI announced a historic agreement shortly after, which will allow Oracle’s infrastructure to process enormous amounts of AI data. Many in the tech sector think that the corporation is reallocating resources to the US market in accordance with Trump’s efforts to lessen reliance on H-1B visas and offshore.

    Global Tech Layoffs Trend in 2025

    Oracle’s action is in line with a larger pattern among large tech firms that are reducing employment elsewhere in order to offset the sharply increasing expenses of AI infrastructure.

    This year, Microsoft has laid off some 15,000 employees, and Amazon and Meta Platforms have also reduced their workforces as they reallocate funds to AI projects.

    Even the biggest companies are being forced to reevaluate their spending priorities due to the growing financial needs of AI development, which are fuelled by the requirement for enormous data centre capacity and processing power.

  • Microsoft Mandates 3 Days Work From Office for Employees

    Microsoft may soon ask workers to spend more time in the office as it prepares to tighten its hybrid work policies. A Business Insider story claims that the tech giant intends to implement a new attendance requirement as early as January; however, specific dates may differ depending on where its offices are located.

    Microsoft’s New Hybrid Work Policy for 2025

    Beginning early next year, employees at its Redmond, Washington, headquarters are anticipated to start coming into work more regularly. Microsoft is planning to require at least three days of in-office work per week, according to people familiar with the situation who spoke to the outlet.

    The business is currently figuring out the specifics, although its original goal was to make an official announcement in September.

    Why Microsoft is Ending 5 Years of Remote Flexibility

    Microsoft has had a flexible work policy since late 2020, allowing staff members to divide their time between the office and their homes nearly evenly without requesting special permission.

    However, in reality, the policy has been even more lenient, with many employees opting to work remotely the majority of the time. The business now appears prepared to adopt a more stringent balance. Although spokesperson Frank Shaw stressed that no final decision has been taken yet.

    How Microsoft’s Policy Compares to Google, Amazon, and Meta?

    This action would align Microsoft with other major tech companies that have recently tightened their policies around office returns. For example, Amazon mandates that staff members be present at the office five days a week.

    John Stankey, the CEO of AT&T, has taken a firm stand as well, emphasising that staff members either cooperate or look for alternatives. Similar to Microsoft’s suggested strategy, Meta and Google have also implemented three-day office regulations.

    The Future of Remote Work in Big Tech

     It’s interesting to note that several Microsoft teams are already in the lead. More than three days a week have apparently been spent working from the office by staff members in its Corporate, External, and Legal Affairs (CELA) group. After years of relative freedom, Microsoft’s employees will need to retrain if the policy is finalised. The shift suggests that, as businesses strive for a more collaborative office culture, the days of highly flexible remote work at large tech companies may be coming to an end.

    Quick
    Shots

    •Company set to mandate 3 days
    in-office per week starting early next year.

    •Since 2020, Microsoft allowed
    near-equal remote/office balance, but employees often worked mostly remote.

    •Some teams (e.g., CELA group) already
    work >3 days in office, signaling transition in progress.

    •Reflects broader move among tech
    giants to rebuild collaborative office culture and reduce remote dependency.

  • TCS Announces Salary Hike for 80% Employees Amid Layoffs and Market Uncertainty

    TCS surprised its employees by announcing pay increases for qualified associates up to grade C3A and comparable (freshers to mid-level), which covers about 80% of its workforce.

    TCS Layoffs 2025: 12,000 Mid and Senior-Level Staff to Be Impacted

    TCS plans to lay off 2% of its workforce this year, or around 12,000 mid- and senior-level personnel. This is at a time when many of its competitors have put compensation increases on hold or postponed them.

    CHRO Milind Lakkad and CHRO-designate K Sudeep sent out an internal message on 6 August stating that the pay increase will take effect on September 1. In response to a question from the media, the corporation stated that it can affirm that, as of September 1, 2025, it will be raising wages for almost 80% of its employees.

    June Quarter Results: Revenue Decline and Client Slowdown

    In an unusual departure from its April cycle, TCS hinted during the April earnings conference call that it could have to postpone its yearly raises. This came as clients’ pessimistic mood was heightened by a slowdown and uncertainties surrounding tariffs.

    Even in the earnings for the June quarter, Lakkad stated that the corporation has not yet decided whether to raise wages. TCS’s June quarter results showed poor performance, which was credited to the closing of the BSNL purchase, cautious customer mood, delayed decision-making, and unfavourable macroeconomic conditions.

    Due to geopolitical uncertainty that slowed demand, its June quarter revenue decreased 3.1% year over year in constant currency and 3.3% sequentially. TCS gave its employees pay increases last year that ranged from 4.5% to 7%, with strong performers getting double-digit raises.

    The average raise, however, has not been revealed by the corporation in its communications. The announcement of this year’s pay rise coincides with a difficult time when clients are being careful with their spending and making decisions slowly in important markets like the US and Europe.

    Future Outlook: TCS Optimistic Despite Market Challenges

    TCS is nevertheless hopeful about a recovery and expects demand to pick up in the second part of the year. When discussing compensation increases, Indian IT CEOs have taken a cautious stance. Salil Parekh, the CEO of Infosys, stated that the company has completed its pay increases for the fourth and first quarters of the previous fiscal year when discussing the schedule for wage increases.

    As it always does at the end of a cycle, Infosys is now starting to assess the timing for the next one. Two rises over 18 months resulted from the disruption of the normal cycle during COVID-19. Nothing is going to change. The company will continue using its current procedure and promptly disclose the upcoming cycle.