What Tcs Management Said On Salary Hikes, Return-to-office Plans For Employees


While announcing earnings update for the fourth quarter ended March 2022, India’s top IT company Tata Consultancy Services (TCS) unveiled its plans for calling employees back to office after working remotely for more than two years in view of the coronavirus pandemic.

TCS‘ CEO and MD Rajesh Gopinathan in a press conference told reporters that the company’s senior associates will start returning to the office starting with three days in a week from April, and will gradually increase the number of employees coming back, with the company expecting most of its staff working from office by the middle of the year. 

With respect to salary hikes, he said that the IT company gave an increment of 6-8% in FY22 and will be looking at similar hikes with an upward bias in FY23, as quoted by news agency PTI.

“We are starting with our senior associates, the top 50,000 employees, who will start coming to the office, starting three days a week from this month itself. And then we will continuously increase the coverage of associates who will start coming back. So, sometime during the middle of the year, we should be somewhere in the well on the way to the 80:20,” Gopinathan said.

He sounded confident about the 25 by 25 model that the company had laid out, but believes it has to be implemented in a structured manner as currently the IT firm is operating at almost like a 95:5 model.

“We need to get back to a more normal model of 80:20 or so, before we start the migration to the 25 by 25 model and hopefully if the trajectory that we are currently seeing continues, we will start accelerating that shift back to the 80:20 model,” IT giant’s CEO added.

In Q4, TCS added 35,209 employees on a net basis, the highest ever net addition in a quarter. Employee headcount stood at 592,195, a net addition of 103,546 during the year, another all-time high. Meanwhile, TCS’ IT Services attrition (LTM) stood at 17.4% for the said quarter. “IT services attrition continued to climb. However, incremental attrition has moderated”.

 

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Divyansh Singh

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