At a time when the IT sector is facing headwinds, Infosys has given 10-13 per cent salary hikes to a large part of its employees. The top performers received increments in the range of 20-25 per cent, according to a livemint report.
“It (salary hike) would vary between 10 per cent and 13 per cent, and in some cases, top performers have got 20-25 per cent,” the report quoted Krish Shankar, executive vice president and group head of human resources at Infosys, as saying.
Meanwhile, specialist staffing firm Xpheno said that as the Indian IT industry, which saw crazy salary hikes and bonuses recently, is facing economic headwinds with the companies tempering down the salary hikes and bonuses. Big tech companies, including TCS, HCL Tech and Wipro, are also slowing down on hiring and have also frozen it.
IT services cohort has witnessed a 41 per cent decline in hiring action since April 2022, according to data from Xpheno. Tech startups have slowed their hiring by 63 per cent and the software products cohort has dropped hiring action by 58 per cent and this overall fall in hiring has softened the talent war. The data suggest an overall drop of 60-70 per cent in the number of offers chasing talent.
IT companies globally, including in India, are also going slow on the fresh hirings and moreover resorting to layoffs. Leading chip maker Intel is planning to lay off thousands of employees in order to cut costs. Previously, tech giants Microsoft, Google and Tesla have already announced layoff of employees.
IT companies — Tata Consultancy Services (TCS), Infosys, Wipro and HCL Tech, among others — are facing high attrition rates and the IT sector’s average attrition rate (last twelve months) is currently as high as 25 per cent. The past few quarters have seen higher attrition rates, and the hiring has slowed. Experts say the primary reason for high attrition is that the growth opportunities are now relatively lesser in the IT sector as compared to other sectors.
This week, Infosys reported voluntary attrition of 27.1 per cent for the September 2022 quarter (Q2FY23). Although it was lower than the previous quarter’s 28.4 per cent, it is higher on a yearly basis as compared with the 20.1 per cent recorded in Q2FY22.
HCL Tech’s attrition (last twelve months) remained at 23.8 per cent in Q2FY23, TCS attrition rate in IT services was 21.5 per cent during the September 2022 quarter (higher than 19.7 per cent in the previous quarter and 17.4 per cent in the March quarter). Wipro’s voluntary attrition, measured in the trailing 12 months for the quarter, was at 23 per cent, a moderation of 30 bps from the previous quarter, the company said.