India’s leading IT service providers, Tata Consultancy Services (TCS) and Wipro, have adopted distinctly different strategies concerning salary hikes and graduate recruitment in the current financial year, reflecting their unique approaches to workforce management amidst rapid AI-driven changes.
Graduate Hiring Strategies
TCS has maintained robust graduate hiring, onboarding 24,000 freshers in the first half of FY27. This includes 14,000 graduates in the first quarter and another 10,000 in the second quarter. According to TCS Chief Human Resources Officer Sudeep Kunnumal, the company’s campus recruitment efforts are nearing completion, targeting demand across niche technology areas that support its growth.
Conversely, Wipro paused campus hiring during the first half of the year, with plans to recommence recruitment in the second half in response to anticipated volume growth. Wipro’s Chief Human Resources Officer Saurabh Govil indicated a flat overall headcount year-on-year, emphasizing a cautious approach to workforce expansion.
Approaches to Salary Increments
The two companies also differ markedly on salary adjustments. TCS implemented annual increments starting April 1, 2026, awarding double-digit raises to top performers. These salary hikes contributed to a 170 basis points operating margin reduction in Q1 FY27, where TCS reported a 24% operating margin. CFO Samir Seksaria acknowledged the margin impact, viewing it as an investment to maintain talent and competitiveness.
In contrast, Wipro declared no plans for further salary increases immediately following its hike effective March 1, 2026. CFO Aparna Iyer noted that another raise was not under consideration at the time of the Q2 FY27 earnings call, signaling a more measured approach to compensation adjustments.
Impact of AI on Workforce and Productivity
AI integration remains a significant theme for both companies, though neither attributes their hiring or salary policies solely to AI advancements. TCS CEO K. Krithivasan highlighted the company’s growing AI services revenue, surpassing $3.1 billion annually, and pointed to demand for specialized technology expertise as a driver for hiring.
Wipro acknowledged AI-driven productivity improvements but has yet to link these directly to changes in recruitment strategies or compensation. This nuanced stance suggests that while AI influences operational efficiency, workforce decisions are grounded in broader business considerations.
Conclusion
TCS’s proactive hiring and incremental salary hikes contrast with Wipro’s cautious recruitment resumption and hold on further pay increases. These contrasting approaches illustrate how major IT firms balance growth ambitions, talent retention, and cost management in a landscape increasingly shaped by AI.
For HR and recruitment professionals, the diverging strategies underscore the importance of aligning workforce planning with both technological trends and financial imperatives. Monitoring these developments will be key to understanding the future dynamics of the IT talent market.
Source: NDTV Profit