TCS Delaying Appraisals: A Wake-Up Call for India's Tech Giant?

Tata Consultancy Services (TCS) — India's pride and the torchbearer of the IT revolution — finds itself at a critical juncture in 2025. Recent reports suggest that TCS is delaying employee appraisals, creating ripples across the Indian corporate and tech communities. Let's dive deep into what this means for TCS, its employees, and India's economy.

A Brief Description of TCS

Tata Consultancy Services (TCS), part of the Tata Group, was founded in 1968. It is one of the world’s largest IT services companies, with a presence in over 45 countries. TCS has been a consistent performer — known for its software services, consulting, business solutions, and IT infrastructure management. It is also recognized as one of the top employers in India, with a workforce exceeding 600,000 employees globally.

TCS has set benchmarks for operational efficiency, quality delivery, and corporate governance — becoming synonymous with India's rise as an IT powerhouse.

Why TCS is Important for Indian GDP Growth

TCS is more than just a tech company — it is a pillar of India's economic engine. Here's why:

  • Contribution to Exports: TCS plays a major role in India's IT exports, accounting for billions of dollars annually.

  • Employment Generator: With lakhs of employees, TCS is a massive source of white-collar employment.

  • Brand India Promoter: It builds India's image globally as a hub of technical talent and digital innovation.

  • Stock Market Influence: TCS significantly impacts the NSE and BSE indices; its stock movements affect broader market sentiments.

  • Tax Contributions: TCS's tax payments and CSR activities fuel government revenues and social programs.

A slowdown or instability in TCS can send shockwaves across the Indian economy, stock markets, and job market.

TCS Leadership Lacking Long-Term Vision?

Critics argue that TCS leadership post-2020 has been reactive rather than visionary.
While competitors like Infosys, Wipro, and international firms like Accenture embraced remote work models, AI-driven services, and cloud-first strategies, TCS appears to have stuck to old playbooks.

Instead of aggressively investing in emerging tech (AI, Machine Learning, Cloud Native Development), TCS has been slow to adapt — focusing instead on legacy projects and traditional IT services, which are facing margin pressures globally.

Result?

  • Slower growth than peers

  • Employee dissatisfaction

  • Difficulty attracting new-gen tech talent

TCS’s Strict Work-from-Office Policy Backfiring

In an age where remote work flexibility has become a global norm, TCS's insistence on a strict 5-days-a-week office mandate has alienated its workforce.
Reports suggest that many employees preferred hybrid or fully remote models, citing better work-life balance and cost savings.

Instead of embracing flexible work as a competitive advantage, TCS leadership treated it as a discipline issue — thereby missing a huge cultural shift in employee expectations.

Consequences:

  • High dissatisfaction levels

  • Increased resignations

  • Difficulty attracting lateral hires

High Attrition in TCS After COVID

While TCS traditionally boasted of low attrition rates (~10–12%), the post-COVID world has been different:

  • In 2022 and 2023, TCS recorded attrition rates exceeding 20% in some quarters.

  • Mid-level managers and tech specialists were among those who left for better pay, remote opportunities, or global companies offering flexibility.

  • Exit interviews often cited lack of flexibility, stagnant salaries, and limited innovation opportunities as reasons.

This brain drain has impacted project deliveries and client satisfaction.

What Next for TCS Employees?

If you're a TCS employee, especially someone waiting for your appraisal, here’s what you should consider:

🔹 Upskill Constantly: Cloud, AI, cybersecurity, and data engineering skills are in high demand. Don't wait for internal upskilling programs; take the initiative yourself.
🔹 Keep Your Resume Ready: While TCS is a great brand, the market is dynamic. Explore lateral opportunities, including startups and MNCs embracing modern tech stacks.
🔹 Network Actively: Build strong LinkedIn connections. Many job referrals happen through informal channels now.
🔹 Push for Internal Mobility: Explore shifting to high-growth internal projects within TCS, like AI labs, cloud consulting, or data services.
🔹 Stay Updated: Follow tech trends; the era of pure services is fading. Productization and innovation matter.

Final Thoughts

TCS is still a titan, but even titans must evolve.
The delayed appraisals are not just a financial inconvenience for employees — they signal a bigger cultural and strategic gap.
The real question now is: Will TCS reinvent itself for the new era? Or risk losing its crown?

Only time will tell.

References:

Here are some articles and reports highlighting the issue:

 

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