Salary hikes for lateral hires in the software industry have not returned to premium levels, despite demand for experienced hands increasing in the sector. Current salary hikes offered to experienced hires were at 10- 20%, compared to increments that were in the range of 15-30% during the period before September 2008 when the global markets began to dampen.
Average salary hikes in the software industry had dropped to single digits in the past year, as companies resorted to freezes and took away salary increments, in a bid to survive during the market slump. The industry, which earlier grew at compounded annual growth rates of over 30%, dropped to single digit growth rates during the economic crisis.
Speaking to FE, chief executive of staffing company Leapvault, Kumaar Bagrodia said, ?Demand for candidates with experience in technology domains has increased. But wage escalation for lateral hires has not yet matched earlier levels of 15% to 30%.?
According to Infosys Technologies?CFO V Balakrishnan, salary hikes for fresh hires were likely to be in line with the industry growth rates.?We do not see hikes going at that level (premium levels of nearly 30%), unless the industry comes back to such growth levels. The recovery is not going to be that fast, it is going to take more time,? he said.
Demand for experienced software professionals- with over two years of experience has shot up in the past quarter. Indian IT major Infosys Technologies recently increased hiring targets by an additional 2000 hires,for lateral roles across its businesses. Recruiters say multi national companies like IBM and Accenture were also hiring to support new business wins. Head Hunters India?s chief executive K Lakshmikanth said that increments for skilled workers would vary depending on employer?s policies.
?Each company has a formula about how it remunerates a veteran and a fresher. In some cases, salary levels depend on where the candidate worked prior to the new job. For instance, if the previous job was with an unknown company and the candidate wished to move to a well established player, he may have to take a pay cut.?