IT Giants in India Face Salary Hike Slowdown: Average Increases Drop to Single Digits

IT salary: Infosys, Wipro & TCS' average salary hikes are down to single digits

In FY 2023-24, major Indian IT firms like Infosys, TCS, Wipro, HCLTech, and Tech Mahindra reduced salary hikes to 5-9% due to economic pressures. Recruiters highlight higher raises for niche skill sets in AI, ML, cybersecurity, and data analytics, driven by digital transformation. Rising employment costs also impact most IT professionals. After two years of double-digit salary increases, Indian IT companies are now offering single-digit hikes. For the financial year 2023-24, major firms like Infosys, TCS, and Wipro report modest raises as clients cut discretionary spending and caution increases amidst economic challenges, ToI reported. While top performers still receive substantial hikes, most employees see a moderation in salary increments. Infosys, known for its higher average annual increments, saw average hikes fall to 9% in FY24, down from 14.6% in FY22, with FY23 noting 9.9%. TCS reflected a similar trend, granting average hikes of 7-9% in FY24, compared to 10.5% in FY22. Wipro employees experienced a median remuneration hike of 9.4% compared to the previous year. "We are one of the few companies to give a hike in April this year. We will continue to do that," said Milind Lakkad, TCS HR head, during a recent interaction with TOI. Tech Mahindra and HCLTech have maintained average hikes between 5% and 7%. HCLTech reported an average hike of 6.8% in FY22, which dropped to 5% last year. Tech Mahindra's average increment stood at 5.6% in FY24, down from 6% in the previous year and 5.2% during the pandemic year when other firms provided double-digit raises. Explaining the trend, Pranshu Upadhyay, regional director and head of India technology practice at recruitment consultancy Michael Page, cited reducing margins and increased workforce and business costs. He also emphasized the availability of entry-level talent in India equipped with generic tech skills. "These companies still want to maintain a good cost arbitrage and wage is one of their biggest costs. Even marginal cuts in the same lead to a bigger absolute impact," Upadhyay added. Mansee Singh, careers leader at Mercer India, mentioned that companies are opting for differential hikes to retain critical talent as overall salary increments slow down. Tech professionals with specialized skills, especially in deep tech, continue to secure higher salary increases. Milind Shah, MD of Randstad Digital in India, stated that professionals in AI, ML, cybersecurity, cloud computing, and data analytics are seeing upticks in the range of 12-15%. "As companies across sectors continue to focus on digital transformation initiatives, these professionals are becoming more relevant, and organisations are seeing the value in investing in them. In the next fiscal year, we expect more green shoots in compensation as talent requirements in specialisations like AI, ML, cybersecurity, cloud computing, and data analytics will continue to grow," he said. Infosys and Tech Mahindra did not respond to TOI's queries as both companies are presently in a 'silent period' ahead of their June quarter earnings announcements. This overall trend reflects a cautious approach by Indian IT firms amid economic uncertainties, balancing the need to retain key talent while managing increasing business costs. The shift from double-digit raises to more modest increments aligns with a broader focus on cost management and strategic investment in specialized skills crucial to digital transformation. (With ToI inputs)

IT Companies Experience Drop in Salary Hikes to Single Digits

Bengaluru: After two years of double-digit raises at Indian IT companies, salary hikes are falling to single-digit percentages. Three of top five Indian IT companies have seen a decline in their annual salary increments as clients exercise caution and reduce discretionary spends The challenging economic landscape has compelled IT firms to adopt a more discerning stance when it comes to rewarding employees.For many IT professionals, excluding a select club of top performers, salary increases have moderated in the range of 5% to 9% in financial year 2023-24. Infosys, known for having the highest average annual increments among competitors, saw average hikes drop to 9% in FY24, compared to 14.6% in FY22. The average hike for FY23 was 9.9%. Similarly, TCS implemented an average hike of 7-9% in FY24, down from 10.5% in FY22. In a recent interaction with TOI, TCS HR head Milind Lakkad said, "We are one of the few companies to give a hike in April this year. We will continue to do that." Wipro employees saw a 9.4% increase in the median remuneration compared to the previous year. Tech Mahindra and HCLTech have maintained average hikes between 5% and 7%. HCL's annual reports showed that the company rolled out an average hike of 6.8% in FY22, which dropped to 5% last year. Tech Mahindra's average increment was 5.6% in FY24, compared to 6% in the previous year and 5.2% during the pandemic-hit year when other firms provided double-digit hikes. Pranshu Upadhyay, regional director and head of India technology practice at recruitment consultancy Michael Page, attributed this trend to two factors: reducing margins as workforce and overall business costs continue to rise, and the availability of talent at the entry level in India, where most of the workforce in these organisations possesses generic tech skills. "These companies still want to maintain a good cost arbitrage and wage is one of their biggest costs. Even marginal cuts in the same lead to a bigger absolute impact," Upadhyay added. Mansee Singh, careers leader at Mercer India, said that as salaries moderate, companies are using differential hikes to retain critical talent. Tech professionals with niche skills, particularly in the deep tech domain, have been able to secure higher upticks in the range of 12-15%, Milind Shah, MD of Randstad Digital in India, said. "As companies across sectors continue to focus on digital transformation initiatives, these professionals are becoming more relevant, and organisations are seeing the value in investing in them. In the next fiscal year, we expect more green shoots in compensation as talent requirements in specialisations like AI, ML, cybersecurity, cloud computing, and data analytics will continue to grow," he said.

Salary hikes at IT cos drop to single digits - Times of India

BENGALURU: After two years of double-digit raises at Indian IT companies, salary hikes are falling to single-digit percentages. Three of top five Indian IT companies have seen a decline in their annual salary increments as clients exercise caution and reduce discretionary spends The challenging economic landscape has compelled IT firms to adopt a more discerning stance when it comes to rewarding employees.For many IT professionals, excluding a select club of top performers, salary increases have moderated in the range of 5% to 9% in financial year 2023-24. Infosys, known for having the highest average annual increments among competitors, saw average hikes drop to 9% in FY24, compared to 14.6% in FY22. The average hike for FY23 was 9.9%. Similarly, TCS implemented an average hike of 7-9% in FY24, down from 10.5% in FY22. In a recent interaction with TOI, TCS HR head Milind Lakkad said, "We are one of the few companies to give a hike in April this year. We will continue to do that." Wipro employees saw a 9.4% increase in the median remuneration compared to the previous year. Tech Mahindra and HCLTech have maintained average hikes between 5% and 7%. HCL's annual reports showed that the company rolled out an average hike of 6.8% in FY22, which dropped to 5% last year. Tech Mahindra's average increment was 5.6% in FY24, compared to 6% in the previous year and 5.2% during the pandemic-hit year when other firms provided double-digit hikes. Pranshu Upadhyay, regional director and head of India technology practice at recruitment consultancy Michael Page, attributed this trend to two factors: reducing margins as workforce and overall business costs continue to rise, and the availability of talent at the entry level in India, where most of the workforce in these organisations possesses generic tech skills. "These companies still want to maintain a good cost arbitrage and wage is one of their biggest costs. Even marginal cuts in the same lead to a bigger absolute impact," Upadhyay added. Mansee Singh, careers leader at Mercer India, said that as salaries moderate, companies are using differential hikes to retain critical talent. Tech professionals with niche skills, particularly in the deep tech domain, have been able to secure higher upticks in the range of 12-15%, Milind Shah, MD of Randstad Digital in India, said. "As companies across sectors continue to focus on digital transformation initiatives, these professionals are becoming more relevant, and organisations are seeing the value in investing in them. In the next fiscal year, we expect more green shoots in compensation as talent requirements in specialisations like AI, ML, cybersecurity, cloud computing, and data analytics will continue to grow," he said. Infosys and Tech Mahindra did not respond to TOI's queries as the firms are in a 'silent period' ahead of June quarter earnings.