Will Indian IT firm increase salary?
IT employees will have something to
cheer about after a two-year lull, with top Indian information technology (IT)
firms, including Tata Consultancy Services (TCS), Infosys Technologies and HCL
Technologies, said to be offering increments for financial year 2010-11.
The increases are expected to be in
the 8 to 12 per cent range, which do not compare too badly with the 13 to 15
per cent increments of pre-slowdown years such as 2007-08. In 2008-09, IT firms
gave salary increases selectively, since the global slowdown affected IT firms
much before other sectors.
In 2009-10, when the global slowdown
scorched the US -- their primary exports market -- Infosys and HCL Technologies
were the only firms to offer selective and token raises. TCS, on its part, only
increased the variable component of the salary.
Now, TCS, India's largest IT
services firm, is planning to raise wages between 8 and 15 per cent, according
to HR sources. The company has not yet announced the increments and, asked
about the policy, a company spokesman declined to comment.
"TCS has also increased its MBA
campus-level salaries by 10 per cent," said an HR consultant, on condition
of anonymity. Infosys, India's second largest IT services company, is planning
an 8 to 12 per cent salary increase from April 1 for both offshore and onshore
employees.
T V Mohandas Pai, head of HR and
administration, and member of Infosys' board, said the company decided to pay
increments because it expects 2010-11 to be a normal year and "things are
looking up".
The company, however, said it was
yet to take a decision on the level of increase.
Infosys, which had initially decided
to defer increments in fiscal 2009-10, later revisited its decision and gave
offshore employees an 8 per cent increase and onsite employees 2 per cent with
effect from October 2009.
The company also said around 23,000
employees who were promoted last year were given an average salary increase of
12.5 per cent.
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