At a time when the IT sector is facing challenges, Infosys has offered a significant part of its employees pay raises ranging from 10% to 13%. The highest achievers received raises ranging from 20% to 25%, according to a livemint survey.
According to the publication, Krish Shankar, executive vice president and global head of human resources at Infosys, stated, “It (pay raise) would vary between 10% and 13%, and in some situations, top performers have received 20-25%.”
TCS announced that 70% of its employees will be paid entirely in variable pay, kicking off the Christmas season early. Furthermore, the remaining 30%’s salary will be determined by the performance of their respective units.
Wipro’s CEO and Managing Director, Thierry Delaporte, claimed that in the second quarter of the fiscal year 2023, the business will pay out 100% of variable compensation to 85% of its employees. During a press conference following the release of the second quarter results, he also revealed that the company had promoted over 10,000 employees and raised overall pay.
Cognizant has opted to implement annual compensation increases for its staff, following in the footsteps of Tata Consultancy Services (TCS), Infosys, and Wipro. Employees at Cognizant could earn a 10% wage boost this year, according to sources familiar with the situation.
Meanwhile, Xpheno, a specialized employment agency, reported that the Indian IT industry, which has recently seen outrageous salary increases and bonuses, is facing economic headwinds, with companies restraining salary raises and incentives. TCS, HCL Tech, and Wipro, among others, are also pausing or freezing employment.
According to Xpheno figures, employment activity in the IT services cohort has decreased by 41% since April 2022. The tech sector has lowered hiring by 63%, while the software products sector has reduced hiring by 58%, and this overall decline in hiring has slowed the talent war. The amount of bids seeking talent has decreased by 60-70 percent overall, according to the data.
IT companies around the world, including those in India, are halting new recruits and reverting to layoffs. To save costs, Intel, the world’s largest chipmaker, plans to lay off thousands of people. Microsoft, Google, and Tesla have previously announced layoffs.
IT organizations such as Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Tech, among others, are facing high attrition rates, with the IT sector’s average attrition rate (during the previous twelve months) currently exceeding 25%. In recent quarters, there has been higher attrition and slower hiring. According to experts, the main reason for high attrition is that the IT sector’s growth potential is now limited compared to other businesses.
This week, Infosys reported 27.1 percent voluntary attrition for the September 2022 quarter (Q2FY23). Although it was lower than the previous quarter’s 28.4%, it was higher than the 20.1% recorded in Q2FY22 on an annual basis.
In Q2FY23, HCL Tech’s attrition rate (last twelve months) remained at 23.8%, whereas TCS’s attrition rate in IT services was 21.5% in the September 2022 quarter (higher than 19.7 percent in the previous quarter and 17.4 percent in March quarter). According to the company, Wipro’s voluntary attrition rate for the quarter was 23%, a 30 basis point decrease over the prior quarter.
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