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Infy to give pay hikes and promotions next month
By siliconindia
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Bangalore: Infosys is planning to give pay hikes and promotions to its employees next month. With this step Infosys joined India's IT majors in lifting wage freezes and signaling rising optimism for the software industry's growth prospects.
The company has started a performance appraisal process right in the middle of the festival season, saying in an email last week to staff that hikes and promotions will be effective next month. In a telephonic interview to the Economic Times, Nandita Gurjar, HR Head, Infosys Group said, "Yes, we are giving hikes this October. It will happen across the board." She did not say what the extent of the salary increase would be.
Other IT majors like TCS, Wipro, Cognizant and HCL have already announced to hike employees' salary and their ranks, and they have also been joined by smaller rivals such as MphasiS-EDS, Sonata Software and Symphony Services. Som Mittal, President, Nasscom said, "IT services providers have been winning large deals in recent months and investments in new markets are beginning to pay off, driving the revival. The downturn has been severe, but the industry has worked to see that the impact is minimal. They have done well in the first quarter. This is a people-led industry, so lots of companies are selectively rewarding employees who have worked hard."
Infosys' had skipped the promotion cycle in April this year as employee utilization and billing rates were low. While improved demand and natural attrition have pushed up the utilization rate at Infosys, operating margins are also seen well ahead of its target of 30 percent. Infosys' wage bill is estimated at 45-46 percent of sales, and the company has projected that FY10 revenue will grow by 3.1-4.6 percent to $4.45-4.52 billion.
In a normal year, employees in tech firms get pay hikes of 5-15 percent, but this time companies are very selective about who gets rewarded and restricting pay-raises to only the best performers.