After deferring its annual hikes for the last two quarters, Infosys has announced annual hikes for employees. Shaji Mathew, chief human resources officer, Infosys, announced during a town hall meeting that the Indian IT services firm is poised to implement its annual salary increases for employees on 1 November, 2023.
Usually, the IT Company first announces annual hikes for its senior management in April, and then the remaining employees get the increment in July. However, this year, the company postponed the annual hikes because it was optimising its operations in response to challenges encountered by the industry.
As per Mathew’s statement, the hikes will be majorly focused on its tenured employees and high performers.
During an investor call following the earnings report, Nilanjan Roy, chief financial officer, Infosys, mentioned that the delay in the wage increase was a strategic response to address inefficiencies within the company and is a part of its cost-optimisation initiative, Project Maximus. He also stated that the company has a very strong second quarter and these measures had boosted the company’s margins by 50 basis points.
The company has adjusted its fiscal outlook to account for reductions in project activities and a reduction in non-essential expenditures. The company has revised its guidance for FY24, reducing it by 100 basis points. Infosys now anticipates revenue growth within the range of one to 2.5 per cent, which is a decrease from the previously projected range of one to 3.5 per cent.
The company is implementing additional measures to address inefficiencies, such as enhancing utilisation, decreasing the number of employees on the bench, and forgoing the campus placement drive for this year.