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Tag: Tata Consultancy Services (TCS)

  • Marks & Spencer Drops TCS IT Deal; Tata Firm Refutes Cyberattack Speculation

    According to the Financial Times, British retailer Marks & Spencer (M&S) has terminated its agreement with Tata Consultancy Services (TCS) to run its IT service desk. However, both businesses maintain that the termination has nothing to do with a hack that occurred earlier this year. The decision ends a more than ten-year collaboration in which TCS oversaw a number of M&S’s technological operations. According to M&S, months before the hacking incident, in January 2025, a competitive procurement process was started, and the service desk contract was terminated in July.

    In a statement quoted by the Financial Times, the retailer stated that M&S valued its collaboration with the TCS team and that TCS offers a variety of IT and technology services to the company. As is customary, M&S conducted a comprehensive process, trained a new supplier, and tested the market to find the best product available. M&S’ larger TCS connection is unaffected by this change, the company stated.

    Speculations Still Signaling Towards Cyber Attack

    According to prior reports, the contract’s termination was related to the April 2025 cyberattack that forced M&S to stop accepting online purchases and left numerous locations with empty shelves. According to British media, the attack may have reduced operating profits by as much as £300 million. TCS, however, denied rumours that it had anything to do with the hack.

    Prior to the April cyber incident, the retailer had selected a different service provider through a standard competitive procurement procedure that had been started in January. The Indian IT company declared that the two issues were obviously unrelated. TCS clarified that the IT service desk contract was really a minor portion of its total relationship with M&S, calling reports that connected the two situations “misleading”.

    The business still offers the retailer a number of technological and digital transformation services. TCS assured UK legislators in a statement that there was no proof of compromise throughout its client networks, which included M&S, Jaguar Land Rover, and other significant UK-based clients. TCS claimed that its systems were safe and that it provides services to over 200 clients in the UK who work in vital sectors like nuclear energy, water, and finance.

    M&S’ Terms Attack as Sophisticated Impersonation

    M&S Chair Archie Norman testified before the House of Commons Business and Trade Committee, characterising the April attack on M&S as a “sophisticated impersonation” effort directed at a third-party vendor. Since then, the store has strengthened its incident response and cybersecurity procedures.

    One of India’s biggest exporters of technology services and a long-standing IT partner for numerous international retailers is TCS, a division of Tata Sons. Analysts believe the story underscores increased scrutiny on outsourced IT providers in the wake of high-profile cyber attacks in the banking and retail sectors, even though the company’s explanation seems to have allayed worries about its involvement in the M&S breach.

    In order to prevent operational interruptions from undermining trust in digital transformation partnerships, industry experts anticipate that both firms will increase due diligence and openness in their supplier networks as cybersecurity constraints increase.

    Quick Shots

    •M&S has ended its IT service desk contract with TCS,
    concluding a decade-long partnership.

    •M&S stated the move followed a competitive procurement
    process launched in January 2025.

    •Reports linked the contract exit to the April 2025 hack that
    disrupted M&S’s operations.

    •TCS refuted any involvement in the breach, calling such reports
    “misleading”.

  • Infosys Begins Annual Performance Review Cycle for Employees

    The yearly performance review cycle of Infosys has begun, reigniting employee expectations for long-awaited pay raises in 2026. In an email, the HR department of the Bengaluru-based IT services behemoth requested that employees submit their self-evaluations by October 17. Employees feel that this appraisal season is more important than the normal one.

    Following delays and smaller-than-normal raises in the previous two years, many are anticipating a rise. This is a standard procedure, but staff anticipate the business will grant them a rise this time, unlike last year, an Infosys employee told the Economic Times.

    How Infosys’ Performance Review Cycle Works?

    The review cycle at Infosys runs from October to September. Usually, ratings are distributed by January, and in June, the final appraisal letters and updated salary are made public. But in recent years, the business has frequently postponed the procedure. The FY24 final appraisal was postponed and released in January and April of 2025.

    While those at JL6 and upwards had to wait until April, employees up to the JL5 level—including team leads—received their raises in January. In comparison with the November 2023 modification, the rises were still 5–10% lower across all bands.

    After a difficult year during which Infosys suspended compensation increases in FY22 to save money, which had a negative effect on staff morale, the 2023 rise was announced. The corporation employs around 3.23 lakh people, and the Indian IT industry pays special attention to its appraisal policy.

    Infosys Asking Employees for their Key Contributions

    Employees have been invited to highlight their major accomplishments, difficulties, and contributions throughout the past year in the current cycle. Additionally, the email instructs employees to identify areas for skill growth, set development goals, and match current goals with future positions.

    “This is your chance to evaluate your main endeavours, results, obstacles, and successes and establish goals that are ready for the future,” the organisation informed staff. Salary increases will once again be determined by performance reviews, with increases being correlated with criteria like “met expectations”, “commendable”, and “outstanding performance”.

    Other Players too Opting for Annual Performance Reveiw

    Infosys is not the only company that is drawing attention to assessments. Tata Consultancy Services (TCS), its competitor, has also begun assessing its performance. Chief Human Resources Officer Sudeep Kunnumal stated in an internal memo that TCS has implemented compensation increases for C3A-level staff, with top performers receiving double-digit rises, starting in September 2025.

    On October 16, Infosys will release its second-quarter financial results. According to analysts, the size of the impending pay increases may depend in part on the company’s financial performance. The big concern for workers is still whether they will get the rise they have been hoping for in 2026.

    Quick Shots

    •Infosys
    has begun its annual performance review cycle for employees.

    •Self-evaluations
    must be submitted by October 17, 2025.

    •Employees
    are hoping for pay hikes in 2026 after two slow years.

    •The review cycle runs from October
    to September each year.

     

     

  • HCLTech to Increase Employee Salaries from October Following Robust Growth

    HCLTech announced that it will begin giving its workers raises in October, following the lead of its bigger competitor Tata Consultancy Services (TCS), which did so last month with the support of robust revenue growth, improved deal visibility, and sizable artificial intelligence (AI) income.

    The percentage increase that HCLTech would provide to its 226,640 employees was not disclosed. However, the business stated that it will adhere to the same procedure that was used the previous year. HCL has made a big decision by combining quarterly variable compensation with fixed pay for all of its workers, which it claims will help the less experienced workers.

    HCL’s Senior and Midday Level Employee will Receive APB

    Chief people officer Ram Sundararajan said that for the great majority, variable compensation was based on performance at the project level. In order to pay it on a monthly basis, we are combining it with fixed pay. Junior employees will benefit from quarterly performance-level compensation, which was primarily connected to them. HCL reiterated that senior and mid-level staff will continue to receive yearly performance bonuses, which tie compensation to performance.

    During the second quarter, which concluded on September 30, the corporation hired 5,196 new engineering graduates and gained 3,489 employees. As a result, during the first half of the fiscal year, HCL hired roughly 7,180 new employees. Sundararajan had stated in April that the company would hire a lot more new hires in FY26 than in FY25. In FY26, HCL’s voluntary attrition decreased 30 basis points to 12.6%.

    HCL Hired Additional 5,196 Freshers

    Additionally, HCLTech onboarded 5,196 new hires in Q2, bringing the total number of new hires to 7,180 as of H1FY26. On a last-twelve-month (LTM) basis, voluntary attrition was 12.6%, a 20-basis-point decline from the quarter before. On October 13, HCLTech released their Q2 financial results.

    For the quarter that concluded on September 30, 2025, net profit stayed constant at INR 4,235 crore. Compared to INR 28,862 crore in Q2FY25, the company’s revenue increased by 11% to INR 31,942 crore in Q2FY26. Revenue increased 5.2% sequentially, but net profit increased 10.17%. The operating margin increased 120 basis points sequentially to 17.5%. HCLTech has maintained its forecast for revenue growth in FY26 at 3-5% YoY in constant currency, with an operating profit or EBIT margin of 17-18% for the entire year.

    Quick Shots

    •HCLTech
    to implement employee pay raises from October 2025.

    •Junior
    employees’ quarterly variable pay combined with fixed salary for monthly
    payouts.

    •HCLTech
    continue to receive annual performance bonuses (APB).

    •5,196
    freshers joined in Q2; total 7,180 hires in H1FY26.

    •HCLTech’s
    Q2FY26 revenue rose 11% YoY to INR 31,942 crore.

    •HCLTech’s FY26 revenue growth
    maintained at 3-5% YoY, operating margin 17-18%.

  • TCS Raises Variable Pay for Senior Employees, Retains 100% Bonus for Juniors

    Following the release of the company’s second-quarter results, Chief Human Resources Officer Sudeep Kunnumal stated that Tata Consultancy Services (TCS) would increase variable compensation for senior personnel while maintaining its 100% quarterly incentives for younger people, according to the Press Trust of India. In addition to yearly pay increases, Kunnumal affirmed that workers in grades C, C1, and C2 will continue to receive their full Quarterly Variable Allowance (QVA).

    According to him, the updated policy is to compensate senior executives according to their individual and unit success, with total rewards being more than those of the previous year. In essence, it covers everyone who has worked for the company and is eligible for the quarterly bonus, with the possible exception of recent hires, Kunnumal told PTI. The business has been paying 100% at the junior level and will keep doing so. TCS will pay seniors more, once more depending on their performance as individuals and as a team.

    Why TCS Decided to Deploy this Move?

    Kunnumal reaffirmed in an internal email quoted by the Economic Times that staff at C2 grade and higher would receive 100% of their QVA, while those at C3A grade and higher would receive variable rewards based on performance indicators. He wrote, “This segment’s overall QVA payout will be higher than it was last year.”

    The adjustments are made as TCS, the biggest provider of IT services in India, is under investigation for personnel realignment and restructuring. In response to rumours of widespread layoffs, Kunnumal explained that although the company is restructuring positions as part of its push for artificial intelligence, the number of job losses would be closer to 12,000, or around 2% of its worldwide workforce, rather than the 50,000 to 80,000 estimates that some media sources had stated.

    At a period of industry-wide change, TCS’s updated pay structure reflects its intention to strike a balance between stability for its younger employees and more robust performance-linked incentives for senior staff. According to analysts, TCS’s variable pay policies frequently serve as a model for larger developments in remuneration in the Indian IT industry.

    TCS Layoffs is it On or a Speculation

    TCS wants to lay off between 50,000 and 80,000 workers, according to media reports, although Kunnumal refuted the inflated figures. He explained that although TCS is reorganising and restructuring positions as part of its emphasis on artificial intelligence (AI), the actual number of job losses is significantly smaller—roughly 12,000 positions, or 2% of its worldwide workforce. Kunnumal emphasised that many rumours are not factually correct and that the corporation is not aiming for a specific number of layoffs.

    Quick Shots

    •TCS increases variable compensation for senior employees based
    on performance.

    •Employees in grades C, C1, and C2 continue receiving 100%
    Quarterly Variable Allowance (QVA).

    •Seniors at C3A grade and above get variable rewards tied to
    individual and unit performance.

    •TCS is reorganizing roles amid AI adoption, but layoffs are
    limited to ~12,000 employees (2% of workforce).

  • TCS to Create 5,000 New Jobs in the UK, Launches AI Experience and Design Studio in London

    In a statement released on October 10, Tata Consultancy Services stated that it intends to increase employment in the UK by 5,000 over the next three years through its ongoing investment and talent development initiatives. Reaffirming its long-term connection with the UK, India’s largest IT services company announced the opening of an AI Experience Zone and Design Studio in London as part of its investment ambitions in the UK, the statement stated.

    According to Vinay Singhvi, president of TCS’s UK and Ireland division, the UK is the company’s second-largest market worldwide, making it a key component of its global investment plan.

    He added that in order to keep a competitive edge in artificial intelligence and emerging technologies, the AI Experience Zone will also support innovation through partnerships with companies across the United Kingdom. TCS is also investing in people, innovation, and skills in all four countries as it continues to grow its presence throughout the UK.

    Tata-UK a 50 Year Old Partnership

    With 42,000 direct and indirect jobs over the years, the Tata Group company claimed to have a 50-year collaboration with UK companies, spearheading their digital transformation and fostering talent development.

    The AI Experience Zone and London Design Studio, according to the business, are a “reimagination” of its flagship PacePort facility and are anticipated to be crucial in promoting client collaboration and creativity throughout the United Kingdom. TCS built a studio in New York in September, and this London location is its second.

    UK’s Investment Minister Applauding TCS’ Efforts

    The UK’s investment minister, Jason Stockwood, expressed his excitement in seeing Tata Consultancy Services’ (TCS) technological innovation up close at their Mumbai site. The Tata Group has demonstrated leadership in philanthropy and entrepreneurship for almost 150 years.

    Stockwood further mentioned that as TCS and the UK commemorate a historic prime ministerial visit to India, they have reiterated the two economies’ commitment to maximising the trade agreement they struck in July. The Tata Group, a valued investor in the UK, and its businesses, such as TCS, are essential to this goal, which will eventually result in job creation, financial gain, and economic expansion for both nations.

    Quick Shots

    •TCS
    to create 5,000 new jobs in the UK over the next three years as part of its
    talent development and investment plans.

    •AI
    Experience Zone and London Design Studio inaugurated to drive innovation and
    client collaboration.

    •UK
    is TCS’s second-largest market globally, according to Vinay Singhvi,
    President, UK & Ireland division.

    •AI
    Experience Zone will foster partnerships with UK companies and support
    emerging technology development.

    •Tata-UK
    partnership spans 50 years, contributing to 42,000 direct and indirect jobs.

    •London studio is a reimagination of
    the PacePort facility, following a similar studio launch in New York.

  • TCS’ $7 Billion India Data Centre Investment Faces Scrutiny Over Returns and Strategic Fit

    A $6 billion investment in artificial intelligence infrastructure has been launched by India’s IT giant Tata Consultancy Services, marking a significant shift from its conventional services-led business model to the capital-intensive realm of AI data centres. This is one of the company’s most ambitious investments to date.

    TCS announced plans to become the largest AI-led technology services company in the world at a time when India’s IT services behemoths were being severely criticised for missing out on the AI boom. Over the next five to seven years, the business intends to establish a new subsidiary in India that will create a co-location AI data centre with a capacity of up to 1 GW. The $6 billion question is whether this daring move would test TCS’s financial discipline or reinvent its growth story, as returns and synergies with its core services are questionable.

    Mix Reactions from Market Analysts Over TCS’ Move

    As the demand for AI throughout the world soars, some analysts see it as a smart move to ensure the future of the company; others caution that it’s a low-margin, high-capex diversion that could weaken TCS’s exceptional return profile. By putting its bank sheet to work at a time when the industry is pursuing AI scale, the effort represents an unusual change in direction for the typically conservative IT giant.

    TCS will use a co-location architecture in which clients bring in computing and storage while TCS provides the passive infrastructure. TCS stated in an analyst call following the release of its Q2 results on 9 October that it anticipates the capital intensity to be about $1 billion per 150 MW, with funding being structured through a combination of debt and equity, supported by financial partners.

    According to management, the first phase would be operational in 18 to 24 months, with the first anchor clients coming from Indian businesses, deep-tech AI companies, hyperscalers, and sovereign projects. TCS pointed out that although committed capacity is only 5–6 GW, India’s installed data centre capacity is now at 1.2 GW, but demand might increase by around 10 times over the next five to six years, offering a substantial income opportunity.

    The Core 5 Pillars of TCS’ AI Approach

    Beyond the data centre, management outlined five pillars of its AI strategy: building a future-ready talent model by investing in future-ready skills and hiring top talent locally. Hence, making AI real for clients through rapid builds, AI labs and offices, and value-chain solutions across industries; reframing every service line under a “human + AI” delivery blueprint.

    This strategy makes TCS AI-first by empowering employees to learn, experiment, and integrate AI into their daily work and fortifying ecosystem partnerships. The company aims to generate a steady flow of income from deep-tech, hyperscalers, pure-play AI companies, and Indian government and commercial businesses.

    TCS’s choice to invest in an AI data centre puts the company at an intriguing crossroads, where its renowned financial discipline meets the capital-hungry demands of the AI era, even though it posted a respectable quarter on low expectations. The outcome of this risk could determine the company’s future.

    Quick
    Shots

    •TCS wants to become
    the largest AI-led technology services company globally.

    •Analysts divided as
    some see it as future-proofing AI growth, others as low-margin, high-capex
    diversion.

    •The move puts TCS at a
    crossroads between financial discipline and AI-era capital demands,
    potentially shaping its growth trajectory.

    •AI
    data centre demand in India may grow 10x over next 5–6 years, offering
    substantial revenue potential.

  • 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.

  • 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%.

  • 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.

  • Capgemini India to Hire 45,000 Employees in 2025 Amid AI Talent Push

    This year, Capgemini India expects to hire between 40,000 and 45,000 people, despite mounting concerns about hiring in the information technology (IT) sector. Between 35 and 40% of these will be lateral hiring, CEO Ashwin Yardi told the Hindu Business Line.

    The number of projects being routed to India is steadily increasing for Capgemini, which already has about 175,000 employees there. India is becoming a more alluring delivery base as clients seek to reduce expenses and increase efficiency. According to Yardi, the company’s total sales performance is anticipated to benefit from this demand.

    AI Takes Center Stage in Capgemini’s Workforce Strategy

    The French IT services company’s Indian division has partnered with more than 50 institutions and campuses to facilitate hiring, and the current season’s hiring process is already under way. Early artificial intelligence (AI) training will be a major priority for new hires, guaranteeing that young talent is ready for the rapidly changing AI landscape of today.

    Capgemini vs TCS & Infosys: Who’s Hiring in 2025?

    Capgemini’s hiring news follows Tata Consultancy Services’ (TCS) statement that it would lay off around 12,000 workers, or 2% of its global workforce, over the course of the year. On the other hand, Salil Parekh, the CEO of Infosys, affirmed the company’s intention to increase its workforce: “In the first quarter, we hired over 17,000 people (gross hiring), and we intend to hire roughly 20,000 college graduates this year,” he told The Times of India.

    WNS Acquisition and Its Impact on Capgemini’s Future

    In the meantime, Capgemini announced last month that it would acquire business process outsourcing (BPO) company WNS for $3.3 billion. The goal of the transaction was to combine the companies’ strengths and satisfy the increasing demand from businesses for sophisticated, automated services. The old BPO model may be impacted by AI, which might have an effect on the industry’s long-term earnings, according to some analysts. Nevertheless, Capgemini anticipates that the WNS agreement will increase profits rather rapidly.

    By 2026, the company anticipates a 4% increase in profits per share (EPS), followed by a 7% increase the following year. However, the overall business outlook is still cautious. A recent Reuters story claims that Capgemini has reduced its full-year revenue forecast because of weak demand and unpredictability in the world economy. In contrast to its previous prediction of -2% to +2% growth, the company now anticipates growth in the range of -1% to +1%.

    India’s IT Job Market: Layoffs, Hope, and the AI Shift

    Recent industry data gathered by Nasscom and independent market experts indicates that between 2023 and 2025, over 100,000 jobs were lost in India’s tech sector, primarily in non-digital and mid-level management positions. As a result, Capgemini’s expansion plans provide a unique glimmer of hope in a conservative workforce.

    Capgemini’s collaborations with Indian universities aim to develop skills in AI, machine learning, cloud computing, and cybersecurity in addition to recruiting. These collaborations aim to increase recent graduates’ AI preparedness by providing specialised learning materials, internship opportunities, and exposure to real-world projects.