When Indian companies tighten their budgets, the consulting and auditing firms that support them adjust accordingly. The group known as the Big Four – KPMG, EY, PwC, and Deloitte – has begun to slow down promotions, rethink salary increments, and reduce the number of seniors promoted to partner positions.
“A significant number of our major consulting clients, particularly in the global IT sector, have reduced their growth rate, triggering a ripple effect. Consequently, our promotion numbers are expected to decrease, and salary increments and bonuses typically awarded in August/September will likely be affected,” stated a senior partner from one of the Big Four firms.
Recently, Deloitte announced its promotion statistics in India. Mint discovered that around 4,600 individuals received promotions, down from approximately 5,000 the prior year – reflecting an 8% decline. This included only 74 individuals who were made partners or executive directors, compared to 150 the previous year.
EY also revealed its partner promotions last week. According to Mint, 110 senior executives were promoted to partner, whereas last year, the figure was 124.
Deloitte did not respond to inquiries from Mint. EY declined to comment on last week’s partner promotions.
“To meet our clients’ growing demands and market activities, we continue with our hiring pace, bringing in about 13,000 new employees each year. While our appraisal cycle is still a quarter away, we expect our promotion figures to align closely with those of past years,” said Arti Dua, partner and talent leader at EY India, in an email to Mint.
The partnership structure in consulting and auditing firms is akin to that of law firms. Equity partners contribute financially to the firm, attract clients, and receive a proportion of the firm’s revenue, while regular partners are senior members who earn a fixed salary and bonuses.
There are approximately 3,000 partners among the Big Four, and senior industry executives suggest that pay increases last year were within the 7-9% range. This year, such hikes may be reduced to around 5-7%.
Focus on High Performers
KPMG in India acknowledged that external market conditions will influence their upcoming salary adjustments.
“While industry trends and external pressures may affect increments, bonuses, and promotions, we remain committed to meritocracy, ensuring that top performers are recognized and compensated competitively,” remarked Reena Wahi, partner and head of people, performance, and culture at KPMG in India.
Despite the challenges posed by a sluggish global economy, KPMG remains dedicated to investing in its workforce, sparking innovation, and delivering value to clients, according to Wahi.
PwC did not respond to Mint‘s inquiries regarding promotions and salary adjustments.
Professional services firms are undergoing restructuring due to slower growth and intensifying regulatory scrutiny in global markets, as reported by The Economic Times in April.
Layoffs in major global IT companies like Microsoft have created uncertainty throughout the sector. Mixed hiring and pay increase signals are emanating from India’s IT giants – Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd, and Tech Mahindra Ltd – as they navigate challenges related to the US tariff policies enacted by President Donald Trump.
As reported by Mint in May, many startups have cut back on hiring as they reassess their strategies and the impact of artificial intelligence on their operations. Prominent tech companies such as Zomato, Cars24, and Gupshup have also initiated layoffs during the January-March quarter.
For the Big Four, while salary increases have yet to be announced, adjustments may occur in light of geopolitical issues, trade disputes, and cautious client strategies. Deloitte had previously estimated an average salary increase of 8.8% for India Inc, while Aon projected 9.2%.