Tata Consultancy Services, the largest IT-services firm in the country, would give 8-10 per cent hikes to employees.
Infosys, the second-largest firm in the sector, will give only 4-9 per cent increase to 85 per cent of its employees. Senior employees will get their hikes only after at least three months.
At Wipro, hikes effective from June 1, will be low for most. Top performers will, however, have been rewarded with relatively higher increments.
“For offshore employees, the hike percentage is mid-single digit; onsite employees have low- to mid-single digit hike percentages, depending on their location,” said a company spokesperson.
Tech Mahindra is also giving single-digit percentage hikes to junior and mid-level employees, with five to eight years experience. Senior employees might not get any hike at all — it would depend on recommendations of respective managers, a source in the company said.
Cognizant Chief People Officer Jim Lennox has informed employees that hikes and promotions have been deferred by three months to October 1. Junior employees will see a marginal increase in base salary; senior managers will get a one-off cash payout.
The IT services industry
is bracing for a higher cost of operations as it plans to add more people locally in their largest market in the US. At a time when transformation towards digital technologies such as cloud, artificial intelligence or automation are yet to offset the decline in traditional IT infrastructure business of these firms, most of them would experience cost pressure for the next three to four quarters because of increased global hiring.
This, analysts said, might have forced companies
to offer single-digit increment this year.
The companies, however, are not “bothered” about spending a dollar extra to keep the right talent away from competition. “Earlier higher increment was offered to keep employees within the company. However, with a slowdown in the market, these companies can get away with a lower salary hike,” said an IT industry
analyst requesting anonymity.