Accenture pushes back hike cycle to June, to promote 15,000 in India

Accenture shifts appraisal cycle to June citing economic uncertainty and US contract cancellations; 50,000 employees to be promoted globally including 15,000 in India

Accenture has pushed back its appraisal cycle to June this year from December last year as it grapples with an uncertain macroeconomic environment, low client spending, and the cancellation of US government contracts in the second quarter.

 

The company said in a memo to employees—excerpts of which were seen by Business Standard—that the cycle will now be effective from June and some employees will be eligible for salary hikes. It also highlighted the “elevated level of uncertainty in the global economic and geopolitical environment.”

 

Accenture, the world’s largest IT services provider, follows a September-to-August financial year and employed about 801,000 people as of February. The US-based company will also promote about 50,000 employees, including 15,000 in India, 11,000 in Europe and Africa, and 10,000 in the Americas. 

 

Accenture said it had no comments to offer on the specifics of hikes or promotions.

 

The company’s move follows those of global counterparts such as Cognizant, TCS, Infosys, and Wipro. These firms are moving away from fixed appraisal cycles, offering hikes at varying times during the year as they deal with macroeconomic volatility and focus on cash retention.

 

TCS, for example, which typically rolled out hikes in April, delayed them last month and said it would decide on the timing and quantum later in the year. Cognizant, which follows a calendar year and usually announces hikes and bonuses in March, has deferred them to August for the second consecutive year. Infosys, which follows an October-to-September assessment period, finally rolled out hikes in April. Wipro has said it will take a call in October.

 

In March, Accenture flagged that efforts by the Trump administration to reduce government spending had led to delays and cancellations of new contracts. Government contracts contributed about 8 per cent to its revenue in 2024.