Tata Consultancy Services has confirmed that it will move ahead with on boarding around 650 lateral hires whose joining was deferred for nearly three months. The decision brings clarity for experienced professionals who had been left in limbo since early summer.

Emails reviewed by TOI show candidates have now been invited to take part in pre-joining formalities, with some given October joining dates. The process will be completed after background verification checks are cleared. “We can confirm that we are honouring all offers that have been made, as we have always done through our history, whether it is to freshers or experienced professionals. We look forward to them joining and being a part of TCS,” a company spokesperson told TOI.

The prolonged delay had triggered unease among candidates and drawn attention in the industry, highlighting the tension between companies’ hiring commitments and project demand in a slowing market. India’s $250 billion IT services sector has faced muted revenue growth through 2025 as global clients cut discretionary technology spending.

The confirmation comes against the backdrop of a controversial new “bench policy” introduced by TCS. According to the Economic Times, the policy limits employees to 35 unallocated days per year and sets a target of 225 billable days annually. The change has attracted scrutiny from the Union labour ministry and Karnataka’s labour department, both of which are monitoring whether the rules disadvantage employees waiting for projects.

As of June 2025, TCS reported a workforce of 613,069, making it the largest private-sector employer in India. Analysts said onboarding 650 professionals is a relatively small adjustment in the context of the company’s size, but symbolically important in signalling that the firm will stand by its offers despite tightening utilisation norms.

In parallel, TCS rolled out annual pay increases this month after a five-month delay. The Economic Times reported that the hike, averaging between 4.5 and 7 per cent, applied to employees from entry level to grade C3A, covering around 80 per cent of the workforce. Senior bands C3B to C5 were excluded. The increments took effect from 1 September and were reflected in September salaries, but were not backdated.

An internal email from Chief HR Officer Milind Lakkad and CHRO-designate K Sudeep, cited by the Economic Times, said: “We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80% of our workforce. This will be effective 1st September 2025.”

For employees, the resolution of delayed onboarding and confirmation of pay hikes removes some uncertainty, though it also underscores the new discipline being enforced on staffing. Analysts note that TCS and its peers are under pressure to balance costs with the need to retain talent, as demand shifts towards digital transformation, cloud services and artificial intelligence projects.

While the company has reiterated that it honours every offer made, the episode reflects broader challenges in the IT industry: slower growth, tighter labour policies and rising regulatory oversight. For TCS, the immediate test will be to ensure that the fresh intake of lateral hires can be effectively deployed under the new bench rules, while maintaining employee morale in a competitive market for skills.

Source : https://www.peoplematters.in/news/strategic-hr/tcs-to-onboard-650-delayed-lateral-hires-after-three-month-wait-46589