According to media sources, Indian IT powerhouse Tata Consultancy Services (TCS) has cancelled its post-results news conference for the second quarter profits (Q2), which was scheduled for October 9, because the date falls on the anniversary of Ratan Tata’s passing. At 5:30 p.m., the press conference was planned.
However, the Business Line report also stated that the analyst call will happen that same day. In honour of Ratan Tata, TCS has modified their earnings-day schedule for the second consecutive year. Following his death, the business also cancelled its Q2 news conference last year, but other investor-related events went forward as planned.
TCS Already Notified the Stock Exchanges
On September 22, Tata Consultancy Services notified the stock exchanges that the Board of Directors will meet on October 9 to review and approve the company’s audited standalone financial results for the quarter and six months ending September 30, 2025.
The announcement of a second interim dividend to equity owners will also be discussed by the company’s board. The executive team will speak to the media in a press conference at 5:30 p.m., and the earnings conference call will take place at 7:00 p.m., according to a separate filing on September 23. Despite share losses and ramp-downs in a few clients, analysts predict modest revenue growth.
Axis Securities anticipates that BFSI, Hi-Tech, and cross-currency tailwinds would propel TCS’s 3.5% QoQ topline growth. It further stated that salary increases, increased investments, and decreased utilisation are projected to cause the EBIT margin to drop by 21 basis points over the course of the quarter.
TCS Cutting 2% of its Global Workforce
The justification for the anticipated separation of 12,000 employees, the effect on employee morale, and the separation’s expenses will also be of interest to investors. As the corporation now seeks to concentrate on restructuring plans amid the push for artificial intelligence (AI), TCS announced layoffs of about 2% of its global workforce in the fiscal year 2025–2026.
According to Kotak Institutional Equities (KIE), investors are likely to monitor a number of important factors, including (1) the reasons behind the underperformance in growth in developed markets and any potential share losses; (2) whether the impact of the US tariffs on demand subsided; (3) the rate of adoption of GenAI and the deflationary effect on spending; (4) the impact of the GCC ramp-up on company growth and the GCC as a growth lever; (5) H-1B dependence and plans for further de-risking; and (6) margin aspirations in light of elevated competitive intensity.
Quick
Shots
•TCS cancels Q2 results media briefing on Oct 9 due
to Ratan Tata death anniversary.
•Earnings call for investors scheduled at 7:00 p.m.
as planned.
•CS Board to review and approve Q2 & H1
financial results and discuss interim dividend.
•Analysts predict around 3.5% QoQ topline growth
driven by BFSI, Hi-Tech, and cross-currency tailwinds.
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.
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.”
Tata Consultancy Services (TCS) has implemented a revised associate deployment strategy that requires a minimum of 225 business days of billing yearly in an effort to tighten resource utilisation and decrease idle time.
This restricts bench time to 35 days annually, forcing workers to actively look for projects or face potential career consequences.
According to a media channel, the new regulations, which go into effect on June 12, are a part of TCS’s internal initiative to increase efficiency as the IT services sector struggles with slow development as a result of uncertain macroeconomic conditions.
The Global Head of the Resource Management Group (RMG), Chandrasekaran Ramkumar, sent out an internal communication announcing the modification.
Employees will Face Severe Consequences for not Following Modifications
According to the guideline, associates must be assigned for at least 225 working days annually.
According to the statement, associates who are left unallocated after the limit may experience negative effects on their pay, promotions, abroad postings, and even their ability to continue working.
The TCS communication states that it is the associate’s primary commitment to be proactive, connect with regional RMG, and pursue appropriate prospects, putting the onus allegedly entirely on the employees.
To stay deployment-ready, associates without active project allocations need to complete all training courses, use tools like the Gen AI interview coach, and spend four to six hours a day on learning platforms like iEvolve, VLS, and Fresco Play.
Freshers to be on Their Toes
The business has made it clear that on their first day, new hires should be given projects to work on. Newcomers have been advised to contact RMG immediately for assistance if it doesn’t.
According to a story published by a media outlet, the corporation has expressed concern over its employees’ frequent switching between short-term contracts. In the message, they mentioned that if this occurs regularly, HR may take action to look into the issue, which might have dire repercussions.
According to the new policy, working from the office is the norm when it comes to working arrangements. Flexibility or remote work will only be permitted in certain circumstances, such as a personal emergency, and will require prior RMG approval.
TCS has emphasised that failure to abide by this policy may lead to severe consequences, including termination. Additionally, TCS has issued a warning against making frequent short-term allocations across multiple projects. According to the rules, these kinds of trends could result in disciplinary action and HR investigations.
In today’s globalized and competitive business landscape, outsourcing has become a strategic approach for organizations looking to streamline their operations and enhance efficiency. India has emerged as a preferred destination for BPO services, offering a vast pool of skilled professionals, cost-effective solutions, and a favorable business environment.
The business outsourcing Industry is continuing its growth in India, and now this sector has spread its wings in tier 2 and 3 cities. According to Data Bridge Market Research, the business process outsourcing (BPO) market is expected to increase from an initial valuation of $6,077.36 million in 2022 to an ultimate valuation of $12,378.73 million in 2030, with a compound annual growth rate (CAGR) of 9.3 percent from 2023 to 2030. According to Kearney’s Global Services Location Index (GSLI), India continues to serve 56% of the world’s outsourcing demand, solidifying its position as a major center for the industry. Indian BPO companies are known for delivering high-quality outsourcing services across various industries worldwide.
The term BPO (business process outsourcing) refers to delegating one’s back-end processes to another company (vendor). Major corporations and businesses outsource their back-office work to BPO companies to minimize overhead costs and maximize productivity.
Business Process Outsourcing
Business process outsourcing can be segmented into back-office outsourcing and front-office outsourcing.
1. Back-Office Outsourcing
Back-office outsourcing services include:
Data entry services
Processing services
Data management
Payment processing
Surveys
2. Front-Office Outsourcing
Front-office outsourcing services include:
Order taking services
Inbound call center services
Customer service support
Outbound telemarketing support
Help desk support
Several BPO companies have captured the market by storm. As a result, there is intense competition among BPO providers to stay at the top. Here we will discuss the top BPO companies in India, specializing in back-office and front-office outsourcing services. From data entry and processing to customer service support and telemarketing, explore the leading vendors revolutionizing the industry. Maximize productivity and minimize costs by partnering with the best BPO providers in India.
Top 15 BPO Companies in India – 2025
Here are listed the best BPO companies in India that provide the best business outsourcing services and employ a huge population of India.
Among the most rapidly expanding IT services brands in the world, TCS has been around since 1968 and was an early leader in the information technology sector. Bank reconciliation, payroll, and accounting were among the first tasks given to this BPO company by several Indian clients, notably those in the Tata group. These days, TCS may advise clients in a wide range of industries, including finance, consumer goods, education, energy, utilities, communications, media, and information services. TCS collected a total revenue of US$30.18 billion in its recent financial year (2024-25). This makes TCS one of the biggest BPO in India.
Aegis has its presence in over 37 locations scattered across 7 countries. It has over 35 delivery centers in India. The company primarily functions out of Mumbai and has a branch in Bangalore. The company is owned by Essar, a $35 billion conglomerate. Aegis offers its services to companies dealing in healthcare, technology, retail, energy, telecom, finance and accounting, human resources, and enterprise applications. Over 40000 employees work for Aegis Ltd, and it falls under the top 5 BPO companies in India as per the current revenue.
Founded in April 2002, Infosys BPM Limited is a wholly owned subsidiary of Infosys Limited. This BPO Company is based in Bangalore and provides a wide range of full-range BPM services, including annotation, analytics, business transformation, customer service, digital interaction, and business process as a service (BPaaS), etc. With a mammoth revenue of $1.5 billion (2024-25), Infosys BPM stands as India’s top 5 BPO business.
After becoming one of the leading BPO providers in India, Wipro BPO was established in 2002 through the acquisition of Spectramind, a pioneer in the field. Three companies—Wipro, TCS, and Infosys—control the Indian IT services market. This BPO Company offers a wide range of services, including automated reporting, business support consulting, process automation, multi-cloud brokerage (with a single view), data management to drive customization, and more. With a current revenue generation of $10.8 billion (2024-25), Wipro BPO is considered one of the top 10 BPO companies in world.
In the year 1999, Rajesh Bhateja established SunTec India. With over 1,500 permanent staff members and 8,530 customers from 50 countries, this BPO company is currently experiencing rapid growth. Consistently ranked as one of India’s top multi-process IT outsourcing businesses, SunTec India is expanding its global footprint. This BPO company provides a wide range of services related to electronic commerce, including website design and development, catalog management, SEO, product image editing, content creation (including writing product descriptions and reviews), store maintenance, order management, and back office support. SunTec India generated a revenue of $10 million in its last financial year (2024-25).
Pramod Bhasin started Genpact in 1997 with only 20 workers. Genpact, a business process outsourcing (BPO) firm with its present headquarters in New York, debuted on the New York Stock Exchange under the symbol G after a successful initial public offering (IPO) in 2007. This BPO Company assists in cloud computing, data analytics, finance, accounting, sustainability, risk and compliance, intelligent automation, artificial intelligence, etc. Genpact, with its current revenue of $4.85 billion (2024-25), is one of the top 10 BPO companies in India.
EXL Service
BPO Name
EXL Service
Website
exlservice.com
Headquarters
New York, NY
Founders
Vikram Talwar, Rohit Kapoor
Founded
1999
Top BPO Companies in India – EXL Service
In 1999, Rohit Kapoor with other founders, members, established EXL Service as a software company. In data-driven industries like insurance, banking and financial services, healthcare, retail, and logistics, EXL is the crucial partner for the most successful enterprises and claims companies. This BPO company has formed partnerships with nine insurance companies in the United States, nine worldwide banks, and six healthcare payers in the United States.
Fusion CX
BPO Name
Fusion CX
Website
fusioncx.com
Headquarters
Ohio, United States
Founders
Pankaj Dhanuka and Kishore Saraogi
Founded
2004
Top BPOs in India – Fusion CX
Fusion CX, which was once known as Fusion BPO Services, has developed into a significant participant in outsourcing and customer experience transformation. Pankaj Dhanuka and Kishore Saraogi established Fusion CX in 2004, and since then, the company has experienced fast expansion under their direction. Customers in a wide range of industries, including healthcare, life sciences, and others, can benefit from the exceptional customer experience transformation solutions and outsourced services offered by Fusion Communications.
Firstsource Solutions Ltd.
BPO Name
Firstsource Solutions Ltd.
Website
firstsource.com
Headquarters
Mumbai
Founders
Vipul Khanna
Founded
2001
Top BPO Companies in India – Firstsource Solutions
Sanjiv Goenka founded Firstsource Solutions in 2001. This BPO company has more than 150 customers around the world, including 18 Fortune 500 companies and 3 FTSE 100 companies. According to Firstsource, they are the go-to organization for business process management and offer transformation solutions that focus on the customer at every stage of the value chain. A wide range of services is provided by Firstsource to clients all over the world. These include consultancy, digital platforms and technology, AI and ML, IT services and solutions, and more. With a net revenue of $944 million, Firstsource is one of the top ten BPO companies in India
Hinduja Global Solutions
BPO Name
Hinduja Global Solutions
Website
Hgs.cx
Headquarters
Bengaluru
Founders
Parmanand Deepchand Hinduja
Founded
1914
Top BPO Companies in India – Hinduja Global Solutions
Bengaluru, India, is the location of the headquarters of Hinduja Global Solutions Limited, which was established in 1973. HGS provides a wide range of customized outsourced solutions, including strategic consultancy, digital transformation, IT systems integration, intelligent process optimization, and more. The company has over 20,000 (as of 2025) employees spread throughout 34 delivery centers located in eight different countries. With a revenue of $623.5 million, this BPO company is expanding its network, making it one of India’s biggest BPO company.
Invensis Inc.
BPO Name
Invensis Inc.
Website
Invensis.net
Headquarters
Bengaluru
Founders
Vara Prasad Rongala and Prasad Rao Kotnani
Founded
2000
Top BPO Companies in India – Invensis Inc.
Invensis Inc. started in 2000 with just 6 employees and grew to over 150 by 2005. It became ISO-certified in 2012 and achieved GDPR compliance by 2022.
Today, Invensis is a global BPO company with offices in the UK, Canada, Australia, and India. With a team of 5,000+ professionals, it serves top clients worldwide, including Fortune 500 companies like Philips, Trend West, 3E, and GRM.
Invensis supports industries such as logistics, healthcare, retail, telecom, education, and automotive. Its services include finance & accounting, eCommerce support, IT and back-office support, analytics, call center operations, insurance claims processing, and order management.
Top BPO Companies in India – WNS Global Services Private Ltd
WNS Global Services Private Ltd. was founded in 1996. It was initially an in-house unit of British Airways and was known as WNS World Network Services. In 2003, the company began offering business management solutions to clients belonging to other industries. Their expertise spans various sectors, including finance and accounting, customer service, research and analytics, technology solutions, and more. WNS Global Services frequently features in the list of the top 10 BPO providers in India and has more than 200 clients from all over the world.
WNS has more than 60,000 employees and has branches in 16 countries, including 30 cities in India. The current revenue of WNS Global Services is $1.314.9 billion.
In 2004, Jacob William established Flatworld Solutions as a professional company. The operational footprint of this BPO company spans the whole world, with key sales and delivery centers located in India, the Philippines, the United States of America, and the United Kingdom. Flatworld Solutions provides a variety of services, including but not limited to: IT Outsourcing Services, Finance and Accounting Services, Mortgage Support Services, Business Process Outsourcing (BPO) for Healthcare, Creative Services, Data Services, Insurance BPO Services, Data Science Services, and more. It operates in the same space as some of the top 10 BPO companies in India.
Accenture
BPO Name
Accenture
Website
accenture.com
Headquarters
Bangalore
Founder
Julie Sweet (CEO, Chair)
Founded
1989
Top BPO Companies in India – Accenture
Accenture is a top global professional services company and was named one of the best places to work in 2020. Headquartered in Bengaluru, it’s one of India’s top 10 IT firms, working with clients in over 120 countries.
Known for its strong focus on technology, cloud, data, and AI, Accenture has seen steady global growth. Its wide industry experience and strong global delivery make it highly efficient and competitive.
TechSpeed Inc
BPO Name
TechSpeed Inc
Website
Techspeed.com
Headquarters
Pune
Founder
Sameer Shimpi
Founded
2002
Top BPO Companies in India – TechSpeed Inc
Techspeed Inc. is a women-owned tech company offering AI-powered BPO and data services. Founded in 2002 in Portland, Oregon, it now has 300–400 employees with offices in the U.S. and India (Pune).
They specialize in data mining, processing, and AI/ML solutions. The company is ISO 27001 certified, HIPAA compliant, and BBB accredited.
Their key services include AI-driven processing, machine learning support, data handling, and chat/service desk support.
India boasts a thriving BPO industry, with the top 10 BPO companies showcasing exceptional services and solutions. WNS Global Services, EXL Service, Wipro BPO, Firstsource Solutions Ltd., Infosys BPO, Aegis Limited, and others lead the pack with their expertise and commitment to delivering outstanding results. These companies offer a wide range of services, including customer support, back-office operations, and technology solutions. Collaborating with these top BPO companies can optimize operations, enhance productivity, and drive business success. With their global presence and innovative approaches, these companies are trusted partners for organizations seeking reliable and efficient BPO services in India.
Frequently Asked Questions
Is BPO good for a Career?
Business process outsourcing (BPO) is one of the fastest-growing sectors. The work environment in the BPO sector is excellent and comes with good wages.
What is BPO full form?
Business Process Outsourcing is the full form of BPO.
How many BPO companies are there in India?
There are 3699 BPO companies in India.
What is the common name of BPO?
Today, business process outsourcing (BPO) is known by many other names. Some popular marketing terms for BPO are sourcing, global outsourcing, right sourcing, right shoring, nearshoring, bestshoring, and offshoring.
Why should I consider outsourcing to a BPO company in India?
Outsourcing to a BPO company in India offers several advantages. India has a large pool of skilled professionals, cost-effective solutions, a favorable business environment, and a strong infrastructure. Indian BPO companies are known for their quality services, innovation, and domain expertise, making them attractive partners for businesses looking to streamline operations and reduce costs.
What is the difference between a BPO and a call center?
A BPO company performs the back-office tasks of any business like customer support or accounting functions, whereas a call center company handles just telephone calls. The process of outsourcing a specific function of any business to a third party is ‘business process outsourcing’.
List the top 10 BPO companies in India?
The top 10 BPO companies in India are:
Genpact
Tata Consultancy Services
WNS Global Services Private Ltd.
EXL Service
Wipro BPO
Firstsource Solutions Ltd.
Infosys BPO
Aditya Birla Minacs Worldwide Ltd.
Aegis Ltd.
Hinduja Global Solutions
Can these BPO companies cater to specific industry needs?
Yes, the top BPO companies in India offer services across various industries, including banking, healthcare, retail, technology, and more. They have the expertise and experience to cater to specific industry needs and provide tailored solutions accordingly.
How can I choose the right BPO company for my business needs?
Choosing the right BPO company depends on your specific requirements and preferences. Consider factors such as industry expertise, service offerings, scalability, pricing, client reviews, and cultural compatibility. Conducting thorough research, requesting proposals, and evaluating their track record can help you make an informed decision.
As the company strives for more growth in the artificial intelligence cloud industry, TCS, the largest provider of IT services in the nation by market capitalisation, has reorganised its AI.Cloud division into two separate business divisions, according to a senior company official.
In August 2023, TCS launched its AI.Cloud division with the goal of leveraging cloud computing and generative artificial intelligence (GenAI) to increase business value.
AI is becoming more prevalent every day and is now mentioned in every conversation, according to Siva Ganesan, who is currently in charge of the recently established AI.Cloud unit. He emphasised the future developments in this field, saying that they will become more widespread and intense in the years to come.
New Team to Captain the AI Ship
The cloud division will be led by Krishna Mohan, who was previously the deputy head of the AI.Cloud unit. In the meantime, Satish Byravan will be the global head of data, and Ashok Krish has been appointed as the worldwide head of AI.
According to senior executives, the Tata Group company has created a specific unit for artificial intelligence (AI) and another for cloud services in what is perceived as a calculated attempt to capitalise on the promise of AI.
No Separate Revenue Stream for AI
In the past 12 months, the company has seen a multiplication in the volume and vibrancy of activity in the data and AI domain, Ganesan told a media outlet. Since TCS does not publish distinct income for AI, he did not provide precise numbers.
According to his explanation, the unit will serve as a “central unit, a repository of all AI things”. Executives emphasised that the establishment of separate business entities is justified by the significant growth potential and relatively unexplored areas of both cloud and AI.
According to a media report, due to their tight relationship, data is also included in the AI unit. TCS can provide complete solutions that integrate AI and data services in situations where clients’ data infrastructure isn’t yet AI-ready.
Hunting for Fresh Specialist AI Talent
The business is employing skilled AI specialists from the market and concentrating on retraining the organisation’s current workforce by updating the training programme. According to authorities, the corporation believes that both AI and cloud have a large unexplored market and substantial growth potential, which is why it has specialised business units.
According to a media report, data is being incorporated into the AI business unit because the two are closely related.
The report also noted that TCS can provide its services as a unified proposal in many situations when an organisation’s data environment isn’t prepared to handle AI. It is “inevitable” to run AI as a focused and more close-to-domain unit since the corporation wants to grow “exponentially” in the fast-evolving field of AI and catch the rapidly changing market, according to an official.
According to a media outlet, Tata Consultancy Services (TCS) has cut top staff’ variable pay for the January–March quarter. The top software exporter in the nation has reduced variable pay for some employees for the third consecutive quarter.
As per a TCS employee cited in the paper, variable pay accounts for 15–25% of the CTC (cost to the company) for top personnel. For more than a year, the business has been deducting the QVA. Employees received roughly 20% of their variable payout in the most recent quarter.
Junior-level employees’ pay either has no variable component at all or the percentage and associated sum are very low. Senior employees’ variable pay was already reduced by the corporation for the quarters of July–September and October–December in 2024. Only 20–40% of their quarterly variable allowances (QVA) were then paid to certain employees.
Pay-out Based on the Attendance
Last year, TCS modified its variable pay policy to tie it to how frequently workers visit the office. Starting in April 2024, the new rule establishes varying compensation levels according to attendance.
Variable compensation will not be available to employees who visit the office less than 60% of the time. 50% of their variable pay will be paid to those whose attendance falls between 60% and 75%. 75% will be given to workers that show up between 75% and 85% of the time.
The rule then stated that full variable pay would only be paid to employees who attended work more than 85% of the time. TCS said last month that it would postpone staff pay increases that were supposed to start in April 2025 due to concerns about tariffs and the state of the world economy.
Milind Lakkad, Chief Human Resources Officer, stated during the business’s post-Q4 earnings news conference in Mumbai last month that the company will make a decision regarding wage raises during the year due to the unpredictable environment. Depending on the business, it could happen at any time.
Reason Behind the Decision
With a total workforce of about 6.8 lakh, TCS added 625 workers between January and March and 6,433 during the whole year beginning in April 2024. The company’s and the industry’s performance, particularly the first quarter’s decline brought on by the impact of tariffs that slowed anticipated business demand, is consistent with the lower QVA.
The IT powerhouse announced a lower-than-expected fourth quarter, with net profit dropping 1.68% year-over-year (YoY) and 1.26% sequentially to INR 12,224 crore. The quarter ended in March. At INR 64,479 crore, operating revenue increased 0.8% from quarter to quarter and 5.3% year over year.
A significant portion of corporate demand slowed in important industries like media, manufacturing, communications, life sciences & healthcare, and consumers.
TCS , the largest IT company in India , lost over INR 24,295 crore in valuation during the short trading week ending April 11. TCS stock fell 3.82 % during the week to close at INR 3,238 . This decline pulled the TCS market valuation down to only INR 11.69 lakh crore . Meanwhile, the overall Indian stock market also lost ground, with the BSE Sensex and Nifty Index each losing over 200 points during the week.
Following the revelation that annual salary increases would be postponed, investors reacted with caution. This was a reaction to what appeared to be a sign that future growth and workforce morale at the IT giant were in jeopardy.
Salary Hike Deferral Triggers Concern
TCS has declared that it will put on hold its planned employee salary hikes for April 2025, attributing the decision to global uncertainty and changing trade dynamics. The announcement came from Milind Lakkad, the company’s Chief Human Resources Officer. He pointed out that TCS will reassess its business performance during the year and may implement raises at any time depending on conditions.
Fresh graduate hiring is predicted to stay even or perhaps rise in FY26, but the indefinite nature of the salary hike decision has left employees and analysts in a tizzy trying to figure if this is a not-so-subtle means of achieving cost-cutting objectives in an uncertain global environment.
Tariff Uncertainty Casts a Shadow
The ongoing uncertainty about U.S. tariffs only adds to the pressure. TCS Chief Executive Officer and Managing Director K. Krithivasan articulated these concerns in an earnings conference call, saying he is hopeful the turbulence will turn out to be temporary. He believes the impact on the IT services sector is likely to ease within a few months. Yet, until there is clarity, the sector continues to operate in a climate of hesitation and restrained optimism, an ambiance that has translated into cautious investor sentiment.
The postponement of pay increases, in conjunction with difficulties in trade, appears to have intensified the market’s nervousness and to have been a major factor in the company’s plummeting market cap this week.
Quarterly Results Reflect Mixed Performance
The company’s FY25 Q4 results added yet another layer of convolution. For the March quarter, the net profit slipped down to 12,224 crore and registered a 1.68% year-on-year decline. Revenue, however, rose 5.3% and came in at 64,479 crore. For the full FY25, TCS achieved a net profit of nearly 48,553 crore (5.76% growth), and a revenue number of nearly 2.55 lakh crore that represented nearly 6% growth.
Despite these numbers appearing to show resilience, they were not sufficient to calm markets that are unsettled by the bigger picture. The next few months will be crucial as TCS works its way through the global storms and the internal balancing act of pleasing its various stakeholders.
Citing continued financial uncertainty and worries about the changing US tariff landscape, Tata Consultancy Services (TCS) has postponed its yearly wage increases, which were supposed to start in April. Speaking at a news conference on April 10, corporate leaders stated that the hikes would be implemented later in the fiscal year. That will be done after the situation has stabilised and the company’s visibility has improved. According to departing chief human resources officer (CHRO) Milind Lakkad, the business will determine when to raise wages during the year.
TCS made a similar move five years ago during the start of the COVID-19 epidemic, when international business was significantly interrupted. It also highlights the current prudence in the IT industry, where businesses are strictly controlling expenses in the face of uncertain clients. The company has already started to notice strain in customer spending patterns, according to CEO K. Krithivasan. He also warned that if this keeps up, there may be delays in discretionary expenditure. Project delays and slower ramp-ups as clients reevaluate their budgets in light of imminent tariffs are the reasons for this hold, he said.
Keeping the Hiring Momentum On
TCS intends to keep up its campus hiring pace in spite of the salary raise deferment. In keeping with its pledge from the previous year, the corporation plans to hire some 42,000 engineers from engineering colleges this year. With the addition of 625 workers in the fourth quarter, which concluded on March 31, the corporation now employs 607,979. It recorded a net increase of 6,433 workers for the entire fiscal year, which reversed a 13,249 decrease the year before. In the fourth quarter, attrition increased little to 13.3% from 13% in the prior quarter.
According to Lakkad, TCS successfully onboarded 42,000 new hires during FY25 as scheduled. TCS will continue with quarterly variable rewards while putting a temporary halt to annual compensation increases. While the remaining employees will earn variable compensation depending on business performance, 70% of employees will receive 100% of their eligible variable pay for the fourth quarter.
TCS’ Financial Outlook
For the fourth quarter of FY25, TCS recorded a net profit of INR 12,224 crore, a 1.7% decrease from INR 12,434 crore in the same quarter of FY24. The quarter’s revenue increased 0.79% sequentially and 5.3% year over year to INR 64,479 crore. While the company’s yearly revenue hit INR 255,342 crore, up 6% year over year, it posted a net profit of INR 48,553 crore for the full fiscal year, a 5.8% gain. TCS’s revenue surpassed $30 billion with this. In Q4 Q4FY25, the order book total contract value (TCV) was $12.2 billion, up from $10.2 billion the quarter before. TCVs were $8.3 billion and $8.6 billion for the first two quarters of the year, respectively.
Leading Indian tech companies, including TCS, Infosys, and Wipro, have been encouraged by Union IT Minister Ashwini Vaishnaw to create a mobile operating system especially for India. “I urge our leading tech companies—Infosys, TCS, and Wipro—to accept this challenge: create a mobile operating system for our nation,” he stated while speaking at the 32nd ICT Business Awards & DQ Digital Leadership Conclave, which was hosted by Dataquest India. “You’ve excelled in providing services, but now is the time for India to become a product-driven nation,” the minister said, urging these businesses to change their focus, according to a news agency report. The government is prepared to assist these firms in their undertaking.
Making India a Tech Giant
Vaishnaw highlighted the government’s goal of making India a global leader in technology throughout his speech. According to Vaishnaw, Prime Minister Narendra Modi has given the country the courage, foresight, and means to dream large. In addition to tackling the issues of the present, the nation must lay the groundwork for the future by creating goods and technologies that would rank India among the top five technological nations; possibly in the future, it will be mentioned alongside the G7 or G20 as part of a T5’—the top five in technology.
Government’s Push for AI
The minister also emphasised the government’s initiatives to take the lead in artificial intelligence (AI) and democratise the field. He disclosed that the first “Made in India” chip is anticipated to be released this year and that five manufacturing facilities are now being built. He also declared the launch of the AI Compute Portal, which would give government agencies, startups, and researchers access to cutting-edge GPUs and high-performance computing capabilities for AI research. According to him, the government unveiled a shared computing centre with 14,000 GPUs on 10 March. Researchers, students, and businesses in the nation will be able to test AI models, improve algorithms, and create cutting-edge apps owing to the establishment of this centre . The minister added that the nation has a clear goal: it wants to create its own fundamental AI models within the next 12 months. A media outlet asked Vaishnaw to describe the government’s technology strategy for its 2047 objectives. According to him, the government’s third term would be devoted to the development of autonomous AI models, small, problem-specific AI solutions, GPUs, startup support, and talent development.
According to the NASSCOM Annual Strategic Review 2026, the share of IT services and engineering research and development (R&D) will remain dominant in terms of overall revenue. According to the analysis, although the projected growth is strong, over half of the CEOs polled thought that hiring would either remain the same or decline in fiscal 2026. Approximately two-thirds of them stated that artificial intelligence would account for over 10% of IT spending.
