India's largest IT services firm, Tata Consultancy Services (TCS), has announced annual salary hikes effective April 1, while simultaneously renewing its strategic partnership with UK retailer Marks & Spencer (M&S) to drive AI-powered omnichannel transformation.
Key Points
- TCS has announced annual salary hikes effective April 1 across all eligible employees, with top performers receiving double-digit increases.
- The company is prioritising building an AI-first culture and equipping its workforce with AI skills, aligning with evolving customer needs.
- TCS will continue to hire freshers and experienced professionals, focusing on AI, data, enterprise solutions, cloud, and cybersecurity.
- TCS has renewed its multi-year strategic partnership with Marks & Spencer (M&S) to support the retailer's transformation into an omnichannel, data-driven entity, leveraging AI.
- Despite a year-on-year headcount fall, TCS added 2,356 employees in Q4 FY26 and has 270,000 employees proficient in AI and ML.
India’s largest IT services firm Tata Consultancy Services (TCS) announced that it is implementing annual salary hikes.
These would be applicable from April 1 across grades.
However, the quantum of hikes could not be ascertained.
Sudeep Kunnumal, chief HR officer, said, "We have announced annual increments to all eligible employees across grades effective April 1 with top performance getting a double-digit increase.
"In Q4, we continued to invest in a future-ready workforce with strong additions across experienced talent and campus hires."
Focus on AI and Talent Development
Kunnumal added that building an AI‑first culture and equipping people with AI‑skills remained a key priority in FY26 and will continue into FY27, "as we align closely with our customers’ evolving needs."
He also said that TCS will continue to hire freshers and experienced people with a focus on AI, data, enterprise solutions, software engineering, cloud, cybersecurity, and digital engineering.
"In FY26, we also hired over 750 employees with deep advisory and consulting expertise.
"We stepped up our investments in talent development initiative as well," he added.
The total headcount of the company at the end of the fiscal year was at 584,519.
On year-on-year (Y-o-Y) basis headcount continued to fall.
The headcount at the end of FY25 was 6,07,979.
However, on a quarter on quarter basis, at the end of Q4 FY26 the company added 2,356 people.
The company said that it has a total of 270,000 employees with higher proficiency in AI and ML.
In FY25 the company had delayed salary hikes, effective September 2025, this was after a delay of five months.
The quantum of salary hikes was in the range of 4.5 per cent to 7 per cent. While high performers continued to get double digit increases.
TCS Extends Partnership with M&S
TCS on Thursday announced the renewal of its multi-year strategic partnership with Marks & Spencer (M&S).
As part of this continuing partnership, TCS will support M&S as it transforms to become an omnichannel, data driven retailer supported by globally best-in-class modern technologies.
TCS will utilise AI in its transformation approach—supported by its extensive domain expertise and one of the world’s largest AI talent pools.
This will support future-readiness, provide right base for long term growth, and create superior customer experience.
The financial detail of the deal were not disclosed.
Sacha Berendji, operations director, Marks and Spencer, said, "Technology transformation is a key strategic priority for M&S as we invest for growth."
