TCS to Hire 42,000 Trainees in FY26, Rolls Out 1.1 Lakh Promotions Despite Wage Hike Delay Tata Consultancy Services (TCS), India’s largest IT services firm, has announced plans to hire approximately 42,000 trainees in the financial year 2025-26. The recruitment drive will be on par with the hiring done in the previous year, reinforcing the company’s continued commitment to building a robust talent pipeline. This hiring announcement comes even as TCS faces macroeconomic uncertainties, including global demand challenges and tariff pressures under U.S. President Donald Trump’s administration. Stable Hiring Plans Amid Attrition and Growth Needs According to Milind Lakkad, TCS’s Executive Vice President and Chief Human Resources Officer (CHRO), the company’s talent acquisition efforts are in response to both growth requirements and to offset employee attrition. A total of 1.1 lakh promotions were rolled out during FY25.

These promotions, Lakkad said, were part of a “good way” to retain and motivate employees in a volatile environment, particularly when annual compensation revisions are being put on hold.Talent Shift Toward Digital Skills Another notable shift in TCS’s workforce strategy has been the increasing emphasis on digital capabilities. “Last year, we hired 40 percent digital hires compared to 17 percent the year before that,” Lakkad noted. The company’s internal and external training programs have continued to evolve to meet the demand for cloud computing, AI, data analytics, cybersecurity, and other emerging technologies. This strategic focus reflects a broader industry trend where IT firms are not just expanding their teams but also reshaping their skill profiles to remain competitive in a tech-driven future. TCS’s hiring pipeline will include candidates qualifying through the National Qualifier Test (NQT), which follows an integrated pattern for entry-level recruitment.

Based on performance, candidates may be considered for roles across three key hiring categories—Prime, Digital, and Ninja. Modest Headcount Growth Reflects Cautious Expansion Despite the large number of promotions and continued hiring, TCS’s overall headcount saw only a modest increase. At the end of FY25, the total number of employees stood at 6,07,979, a net increase of just 6,433 from the previous year. This limited growth reflects the company’s cautious stance amid market headwinds, where demand cycles remain unpredictable. TCS has been strategically aligning itself for sustained growth by improving operational efficiency and focusing on high-value transformation projects for clients. However, with global economies in flux and enterprise tech budgets under scrutiny, companies like TCS are maintaining a delicate balance between expansion and cost optimization. Salary Hikes Deferred Amid Economic Uncertainty A notable development in TCS’s FY26 talent strategy is the deferral of salary hikes. Lakkad confirmed that the annual wage hike cycle will be delayed this year due to broader economic conditions, including uncertainties linked to trade and tariff policies initiated by President Trump. Although specifics of the delay were not disclosed, Lakkad emphasized that the company remains committed to employee well-being and long-term growth.

Supporting this approach, TCS Chief Financial Officer Samir Seksaria noted that the company had implemented several tactical interventions during FY25, amounting to roughly 100 basis points. These interventions were largely tied to promotions and merit-based advancements. Despite the lack of wage hikes, TCS used internal levers such as recognition, mobility, and role enhancement to keep employees engaged. Mixed Analyst Reactions While TCS’s decision to promote 1.1 lakh employees in a single financial year has been largely seen as a morale-boosting move, it has also sparked debate among market analysts. Some experts argue that the broader IT services demand cycle does not currently support significant employee cost interventions, and that the company’s cautious approach to increments is a reflection of this sentiment. On the other hand, others view the promotion wave as a strategic long-term move, allowing TCS to strengthen its internal leadership pool and reward loyalty during uncertain times. For a company known for its deep bench strength and employee-friendly policies, promotions may help to retain top talent in a competitive job market. Looking Ahead: Balancing Growth and Resilience As TCS steps into FY26, its focus will likely remain on balancing expansion with resilience. The company’s hiring strategy—particularly its commitment to onboard 42,000 fresh trainees—signals confidence in its long-term demand outlook. However, the challenges posed by inflation, client budget constraints, and policy-related disruptions in key markets like the United States continue to weigh on short-term planning. At the same time,

TCS’s steady approach to internal talent management, highlighted by the scale of promotions and continued digital upskilling, reinforces its position as a forward-looking employer. Whether these initiatives will translate into stronger revenue growth and client retention remains to be seen, but they do position TCS as a stable, employee-conscious IT major in an otherwise turbulent sector.