At a time when many IT companies are downsizing and laying off senior staff, Infosys, the Indian multinational IT services provider, is expected to give its senior employees a low pay hike in January next year, which will be between three and five per cent. This raise was earlier scheduled for July this year, but got delayed. Some senior executives are also expected to be promoted, while senior vice presidents will be getting restricted stock units. The junior staff already received an increment in April, 2018.
It is reported that the Company will be emphasising more on performance incentives towards digital contracts. The incentives based on performance will also take into account operating margins and revenue.
Most other IT companies are trying to bring in freshers into the workforce, for which they are laying off senior executives. Tech Mahindra has reduced the age of retirement whereas Cognizant offered its senior staff voluntary retirement, and also laid off 200 senior executives.
Aon India Consulting had undertaken a survey earlier this year, which had predicted a single-digit average salary hike in the Indian IT sector. Therefore, the increments offered by most Indian IT companies does not come as a surprise.