TCS to review salary hike soon

The country's largest software vendor Tata Consultancy Services (TCS) on Tuesday said it will review salary increment plans by this month-end as signs of revival of demand in the sector get stronger by the day.

"There has been no hike in the current fiscal. The demand-supply situation, however, has improved over last year. We review it (wage hikes) along with the business plan for the year, which will be happening somewhere by end of February or in March," TCS Chief Financial Officer S Mahalingam said.

The Indian IT sector was hit last year by the economic slowdown with companies world wide cutting their technology spends. This in turn, had led to many companies cutting jobs, freezing fresh hiring and no wage hikes.

Earlier this month, TCS announced that it would hire 30,000 people next fiscal, signalling that buoyancy was back.

Talking about expectations from the upcoming budget, Mahalingam said the industry, as a whole, wanted the extension of the tax holidays that are provided to IT firms under Sec 10A/10B of the Software Technology Parks (STP) Act.

He also asked the government to clear the ambiguities in various policies related to direct tax code and SEZs.