Last Updated:November 08, 2024, 18:27 IST

While some employees received only 20-40 per cent of their expected variable pay, others saw no payout at all, according to a report.

The variable pay at TCS depends upon both work-from-office attendance and the performance of individual business units.

Tata Consultancy Services (TCS), India’s largest IT services company, has cut variable pay for many of its senior employees for the July-September 2024 period (Q2 FY25) as the business continues to see an uncertain demand environment, according to a Moneycontrol report citing people privy to the development.

While some employees received only 20-40 per cent of their expected variable pay, others saw no payout at all, contrasting with a 70 per cent payout in the previous quarter, according to the report.

The variable pay at TCS depends upon both work-from-office attendance and the performance of individual business units. The latest development highlights the ongoing challenges in demand and the macroeconomic uncertainties that have impacted the lower single-digit growth seen by Tier-I IT companies in Q2.

In Q2FY25, TCS posted a year-on-year revenue growth of 5.5 per cent in constant currency (CC), amounting to Rs 64,259 crore, with a net profit of Rs 11,909 crore.

Responding to Moneycontrol’s detailed queries, a TCS spokesperson clarified, “For Q2FY25 we have paid out 100% QVA (Quarterly Variable Allowance) to junior grades across the company. For all other grades, the QVA depends on their unit’s business performance. This is in line with our standard practice across quarters.”

In April this year, the company had announced annual salary hikes for its workforce, with top performers receiving double-digit increments. Its Chief HR Officer Milind Lakkad had said salary hikes will be in the range of 4.5-7 per cent based on performance, with high-performers receiving double-digit increases.

Last Updated:October 24, 2024, 18:43 IST

TCS and FICO are collaborating to develop solutions for various sectors, starting with reducing churn and optimising costs for telecom service providers.

FICO says TCS brings deep industry expertise and unparalleled solution delivery.

The country’s largest IT services firm TCS on Wednesday announced a tie-up with analytics software firm FICO to bring advanced optimisation and decision management solutions to businesses.

The two entities are collaborating to develop solutions for various sectors, starting with reducing churn and optimising costs for telecom service providers, according to a statement.

Akhilesh Tiwari, president (communications, media and information services Business Group) at TCS, said, “We see immense potential in the TCS FICO partnership, helping businesses manage customers better, and strengthen and operationalize AI/ML. We will make it easier for business users at every level to apply innovations in decision science to their day-to-day operations by using the best-in-class set of analytics and decisioning offerings.”

Alexandre Graff, vice president of partnerships for FICO, said, “Companies are now data-driven, but the next evolution is to be decision-driven. TCS brings deep industry expertise and unparalleled solution delivery. Together, we’ll help businesses in diverse industries harness the power of advanced analytics and decision technology solve critical challenges, from fleet management to supply chain optimisation.”

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)