Bengaluru, Dec 17: In the midst of prevailing concerns over a global recession, significant players in the IT sector, including Infosys, are implementing substantial reductions in annual salary hikes and promotions for their employees.
Infosys, a prominent tech giant based in Bengaluru, has granted its staff a hike of less than 10 percent this year, reflecting a broader trend among global IT companies with headquarters in the US and Europe that maintain a significant presence in Bengaluru.
This downturn, which commenced a year ago and was initially anticipated to last for six months, has persisted, compelling IT firms to take drastic measures regarding salary adjustments. New hires are excluded from this year’s hike considerations.
An IT professional from a US-headquartered company remarked, “IT companies used to provide 20 percent annual hikes earlier, and for those receiving promotions, the hike could be as high as 50 percent. This year, promotions are on hold, and those who did get promoted have received hikes ranging from 10 to 20 percent.”
This situation evokes memories of the challenging period between 2007 and 2009 when the IT sector faced severe setbacks. The prevalence of automation and Artificial Intelligence (AI) in job roles has added to the apprehension among IT professionals, as revealed by a senior HR Manager from a reputable tech company.
The uncertain duration of this phase and the anticipation of a return to prosperous times are key concerns for IT professionals. The demand for skilled employees in the IT sector peaked during the COVID-19 pandemic, with performers being enticed by advance bonuses and lavish gifts like BMW bikes. However, these seemingly extravagant incentives now appear distant.
Experienced industry workers argue that companies that weathered previous recessionary phases are likely to emerge resilient once again, emphasizing that this downturn is a natural phase in the IT industry.
Infosys, in its communication to employees, expressed gratitude for their unparalleled support and efforts to navigate current challenges, ensuring success in all aspects, according to insider sources.
