in the past 10 years, we have given two salary increases in a year as there was a lot of demand for professionals and attrition was high,” said Saurabh Govil, senior vice-president, HR, Wipro Technologies.
“That is not the scenario currently. The increases which we were giving 10 years back were different. Obviously, things will come to normal at sometime, that is how the industry life cycle works,” said Govil.
However, the salary increases in the coming financial year will be more focused and given largely to the strong performers. Suparna Rao, co-founder & CEO, Excellence4u, an employee assessment firm, said that IT companies are likely to be give hikes for specific business verticals or teams that have performed well during the year and very unlikely to go for any across the board hike.
FY13 has been tumultuous for employees as many companies had either deferred their hikes or gave increases in the low single-digit range. Infosys took the dramatic step of deferring salary increases, which was met with all-round surprise and resentment, but later announced a 6% hike. Its peers like Wipro, Tata Consultancy Services and HCL Technologies provided a 6-8% increase in salary for its India-based employees while it was 2-3% hike for onsite personnel.
Asked about the next salary hike, Gurjar of Infosys said, “The company has not decided on the next increment date. In March and April we will see the market and then decide.”
* The IT & BPO sector broadly gave a salary increase in the range of 6-8% in 2012-13
* The Indian IT industry for long has enjoyed double-digit salary increases every year
* Firms wary of giving hikes as 50% of the operating costs of IT cos attributed to wages
* Some companies may also hold back salary hikes and push it by a quarter or two