IT Sector: Infosys, Wipro, TCS Offer Modest Salary Hikes: The Times of India reported that after two years of double-digit growth, salary hikes for employees of India’s top three IT companies with only generic skills fell to single-digit percentages of 5-9% in the financial year 2023–24. The report added that this was because the companies’ clients were cutting back on spending because of economic challenges.
What proportion of pay increases do the leading IT businesses in India offer?
According to the survey, Infosys, which is renowned for offering the biggest yearly increments among its competitors, saw a decrease in its average increments to 9% from 9.9% in the prior year and 14.6% in the year prior.
TCS experienced an average hike of 7-9% in 2023–24 as opposed to 10.5% in 2021–2022. The median increase at Wipro was 9.4% over the prior year. The typical raises at Tech Mahindra and HCLTech were between 5 and 7%.
Why are IT companies cutting down on compensation hikes?
According to Pranshu Upadhyay, regional director and head of recruitment consultancy Michael Page’s India technology practice, salary hikes are decreasing as IT companies witness declining profit margins and rising business expenses in addition to the growing availability of entry-level talent, as reported by the Times of India.
But this is only for people who know basic IT. Milind Shah, MD of Randstad Digital in India, was quoted in the report as adding that techies with specialised abilities have been receiving greater raises in the region of 12-15%.
As to the research, these domains of expertise encompass artificial intelligence, machine learning, cybersecurity, cloud computing, and data analytics.
This isn’t limited to IT firms either. Salary increases are at their lowest point in three years across all industries, according to a Mint report that cited statistics from consultancy firm Aon. Companies are providing 9.3% in 2023–24, up from 9.7% the year before.
