I think what TCS is doing is just a part and parcel of today's market conditions. We should now wake up to the fact that if we can get big hikes we need to ready for these cuts too.
I think other companies have been thinking about it too and this gives a nice opportunity to do so now.
Salaries cannot keep on rising at the rates they are happening in the Indian IT industry. If you look at the Department of Labor (in US) numbers. The average salary hike in the IT industry ranges between 2-3 percent over the last few years.
We should also realize that in India salaries in the next 3-4 years would stabilize and the hikes would not be the same as what we are seeing today. If we keep expecting the same then our own employers (the CTS's, TCS', Wipro etc) would prefer other cheaper locations. Infact all the players have already started moving on those lines.
