Infosys has announced incentive packages to encourage employee transfers to its Hubballi development centre. This initiative aligns with the company’s expansion strategy in tier-2 cities within the Mumbai-Karnataka region and follows recent government warnings about the importance of local job creation.
The announcement comes after criticism from Arvind Bellad, BJP MLA for Hubballi-Dharwad West. Bellad had previously highlighted Infosys’ failure to generate local jobs despite receiving a subsidised land grant of 58 acres. In the Karnataka Assembly, Bellad pointed out the significant difference between the subsidised rate of Rs 35 lakh per acre and the market value of Rs 1.5 crore. He emphasised that the land grant was intended to create employment opportunities for local residents, particularly those who had relinquished their land for the development project.
To incentivise relocation, Infosys will offer tiered incentive packages. Band 3 and below employees will receive an initial Rs 25,000 upon moving to Hubballi, followed by an additional Rs 25,000 every six months for two years, culminating in a total of Rs 1.25 lakh by the end of the 24-month period. Higher-level employees (bands 4 through 7) will receive larger incentives ranging from Rs 2.5 lakh to Rs 8 lakh, on top of the initial relocation bonus, after completing 24 months.
In February, Karnataka’s Minister for Commerce and Industries, MB Patil, also emphasised that such failures to create local jobs violate the Industrial Policy 2020-25. This policy mandates that companies receiving government incentives must provide 100 per cent of Group D jobs and 70 per cent of overall jobs to Kannadigas (residents of Karnataka). Patil warned that the state would withdraw benefits from non-compliant companies.
Infosys aims to address these concerns and optimise resource allocation by encouraging relocation from the Mumbai-Karnataka region. The new transfer policy, applicable to employees at band 2 and above who are currently handling projects at any development centre in India, highlights the promising growth potential of the Hubballi location.
Infosys’ email to employees described Hubballi as a location with “immense growth potential” and “waiting for talent like you to build the future.” This policy also allows employees to seamlessly continue working on their existing projects from the Hubballi development centre.
The company’s plan to establish offices in various Indian cities, including Hubballi, Indore, Navi Mumbai, Nagpur, and Coimbatore, was previously outlined in its April 2023 annual report. This initiative aligns with Infosys’ strategic goals for the year.
