Top Salary Hikes in IT: KPIT and Coforge Outpace TCS and HCLTech

In 2025, mid-size IT companies like KPIT Technologies and Coforge are making headlines by offering some of the highest salary hikes in the Indian IT sector. While industry giants like TCS and HCLTech have taken a more cautious approach to salary increments, these firms are offering salary hikes of up to 11%, thereby outpacing their larger competitors.

What is the Range of Salary Hikes Offered at Mid-Size Firms?

KPIT and Coforge, along with companies like Hexaware, are offering salary increases in the range of 9-11% this year. This is significantly higher than the 4.5-7% hikes offered by TCS and the mostly single-digit increases given by HCLTech.

The trend reflects a broader shift where mid-sized IT companies often invest more aggressively in retaining and attracting talent, especially in critical areas such as cloud computing, data analytics, cybersecurity, and artificial intelligence (AI).

Why Are KPIT and Coforge Paying More?

The key reason is specialised talent demand. These mid-size firms rely heavily on niche skills that are in short supply but high demand, such as AI and advanced digital technologies. They are also more flexible in linking salary hikes directly to emerging tech skills, which allows them to offer competitive pay that large firms may find harder to match.

Why Are TCS and HCLTech Paying 4.5%-7% Salary Hikes?

Large companies like TCS and HCLTech are balancing salary increases with the need to protect profit margins amid global economic uncertainties. Many AI and digital transformation projects in these firms are still in early phases, which means they are cautious about big wage hikes. Instead, they are focusing on moderate raises, delayed increments, and tighter performance appraisals.

What Does This Mean for IT Professionals?

For IT professionals, this trend is important when considering career moves or negotiating pay. Mid-sized companies like KPIT and Coforge are currently offering better increments, especially for those with expertise in high-demand technologies. However, large firms still offer stability, global exposure, and long-term growth opportunities.

Read more: UPI Transaction Limits Hiked from Sept 15: Payments Up to ₹10 Lakh Allowed.

Conclusion

As the IT industry evolves, salary hikes are no longer driven solely by company size but by agility, specialisation, and the ability to reward niche skills. For tech talent, staying updated with emerging skills and considering opportunities beyond the traditional giants could lead to better rewards and career growth.

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