New Delhi: The IT industry leader in India, Infosys, has chosen to postpone the compensation increase for its staff, according to an article. According to the study, the compensation increase is typically announced to all personnel below senior management by June. The team, however, has yet to hear from anyone this year. According to the study, the decision demonstrates that the IT sector is experiencing difficult conditions due to the current macroeconomic situation. For the first time since 2020, Infosys has postponed a pay rise. The IT behemoth had frozen the rise at the moment. The paper noted that the compensation increases were implemented a year later, in 2021.
It should be highlighted that the top IT players also performed poorly in the final quarter of FY22-23. Companies like Wipro and TCS had negatively impacted earnings in the April quarter. Infosys also decreased the variable component of salaries for about 60% of the employees in the fourth quarter of FY23.
After Infosys cut its Q4 variable, many people voiced concern about the state of the tech industry. Aditya Mishra, MD and CEO of CIEL HR, previously told that although IT firms were presenting optimistic outlooks with the assurance that things would improve in October and November, things aren’t exactly looking up. At the current rate, Mishra continued, things will improve in “early 2024”.
Meanwhile, Tata Consultancy Services is set to announce the earnings of Q1 of FY24 today. The latest reports say TCS will also likely declare the dividend apart from the Q1 numbers. Like Infosys, TCS has also seen postponements and cancellations of some projects due to demand uncertainty. The latest reports say that industry experts believe TCS will announce weak numbers. One of the key indicators that everyone will focus on is attrition rate. The possible share buyback will also be watched out.
