The scenario is another indicator that the IT industry going through a tough phase.
The slow growth in the IT industry and the disruption in technology has recently led many IT companies like Wipro, TCS and Infosys to cut jobs and hire local employees. Now, deferment of salary hikes and promotions is another issue plaguing the employees.
Cognizant has revealed that its salary revision and promotions will be effective only from October 1. According to the company, the new salaries of the employees up to the level of vice president will be effective from October.
Earlier, the company used to have this performance appraisal exercise over by the end of July. The delay clearly indicates that the IT industry is going through a tough phase due to slow growth and disruption in technology. The deferment has triggered a fear of job cut among the 2,61,200 employees of the company across the world.
Jim Lennox, chief people officer, Cognizant Technology Solution said that employees up to the manager level would receive a percentage increase in their basic pay like previous years, while people at senior manager and above levels will get a lump sum amount. They will also receive performance-linked bonuses.