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Worst still to come for IT, ITeS and realty staff
By SiliconIndia | Tuesday, 16 December 2008, 19:35 Hrs |
9 Comments
New Delhi: Tough time is still to come for IT and ITeS employees as the worsening financial crunch may lead to further salary cuts in near future. Employees who took huge loans for flat and vehicle are finding it hard to repay the money as companies don't even provide the offered hike and sometimes they cut the current salary, reported The Economic Times.
"Employees in real estate, financial services, information technology (IT) and related services (ITeS) should prepare themselves for salary cuts of up to 15 percent. The first quarter of 2009 will see major cut in compensation levels and lower pay hikes," said recruiting firm Headhunters India Chief Executive Kris Lakshmikanth. A recent ILO reports on wages indicates that the wages will grow by at best 1.1 percent globally in 2009 compared to 1.7 percent in 2008
The crisis would mostly affect the employees at lower and middle levels."The top management will be least affected, while the temporary staff, contractual workers, trainees and interns will have to bear the brunt," said Proffessor J S Sodhi, Director, think-tank Shri Ram Centre for Industrial Relations & Human Resources.
Global HR consultancy Hewitt Associates predicts salaries would rise by a subdued 8-10 percent compared with last year's average hike of 15-20 percent. Target variable pay, bonus and merit increases may well be halved. "Only 40 percent of the top performers would get salary hikes and increments in real estate, finance, IT, ITeS and manufacturing companies next year. The bottom 20 percent will suffer," opined Dr Ganesh Shermon, People and Change Advisory Practice Head, KPMG.
India's largest IT exporter TCS plans to raise salaries by just half compared to last year."The company had offered 15-20 percent salary increase in 2008-09. But we plan to bring it down to 10 percent in India due to the macro-economic factors, as well as business-specific factors, at the end of the current fiscal," said TCS Human Resources Head Ajoy Mukherjee. "Given the market conditions, wages hikes will be even lower in FY10," he added.
The other big Indian IT companies such as Infosys and Wipro have already announced plans for single-digit salary increases in FY09. Things look equally grim for executives in real estate companies. "We have already made 10 percent salary cuts across levels. It has gone up to 30 percent for top management," said Delhi-based builder Omaxe Chairman Rohtash Goel.
"Employees in real estate, financial services, information technology (IT) and related services (ITeS) should prepare themselves for salary cuts of up to 15 percent. The first quarter of 2009 will see major cut in compensation levels and lower pay hikes," said recruiting firm Headhunters India Chief Executive Kris Lakshmikanth. A recent ILO reports on wages indicates that the wages will grow by at best 1.1 percent globally in 2009 compared to 1.7 percent in 2008
The crisis would mostly affect the employees at lower and middle levels."The top management will be least affected, while the temporary staff, contractual workers, trainees and interns will have to bear the brunt," said Proffessor J S Sodhi, Director, think-tank Shri Ram Centre for Industrial Relations & Human Resources.
Global HR consultancy Hewitt Associates predicts salaries would rise by a subdued 8-10 percent compared with last year's average hike of 15-20 percent. Target variable pay, bonus and merit increases may well be halved. "Only 40 percent of the top performers would get salary hikes and increments in real estate, finance, IT, ITeS and manufacturing companies next year. The bottom 20 percent will suffer," opined Dr Ganesh Shermon, People and Change Advisory Practice Head, KPMG.
India's largest IT exporter TCS plans to raise salaries by just half compared to last year."The company had offered 15-20 percent salary increase in 2008-09. But we plan to bring it down to 10 percent in India due to the macro-economic factors, as well as business-specific factors, at the end of the current fiscal," said TCS Human Resources Head Ajoy Mukherjee. "Given the market conditions, wages hikes will be even lower in FY10," he added.
The other big Indian IT companies such as Infosys and Wipro have already announced plans for single-digit salary increases in FY09. Things look equally grim for executives in real estate companies. "We have already made 10 percent salary cuts across levels. It has gone up to 30 percent for top management," said Delhi-based builder Omaxe Chairman Rohtash Goel.
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Reader's comments(9)
1:
Earlier only scientists would work in computer labs. But now anyone can do some courses, and successfully become a professional. Its positive, but negative also, in the sense there is too much workforce in industry. And salary levels of them have reached all-time high. Companies didn't care about salary as long as they got projects. But nobody stopped and thought about future in that rush. Scenario has started breaking down. Lay-offs were bound to happen. No company can afford so high payment, and if they are paying, they won't survive for long if market falls. Probably only 40% good workers of current force will be working in IT now. Then only future downfalls can be avoided.
Posted by:critic
- 17 Dec, 2008
2:
With salaries so high in India, it is becoming cheaper to get software developed in USA itself
Posted by:Indian
- 17 Dec, 2008
3:
There were times when getting an IT seat in Engineering colleges is like getting a lottery.Its True that the present Economic crisis have affected the IT & ITES Sector drastically.
I think the Indian Government should consider giving importance to the manufacturing sector. At least this will add to our self-sufficiency.
I think the Indian Government should consider giving importance to the manufacturing sector. At least this will add to our self-sufficiency.
Posted by:pipson Varghese
- 17 Dec, 2008
4:
I think its only temporary situation. it will get resolved soon.. don't be get scare those who are in IT and ITES...
Posted by:sunoj
- 17 Dec, 2008
5:
One of my suggestion is to generalise the salary for the IT industries in india as the educational sectors are following.
vijay
vijay
Posted by:vijayakumar varadarajan
- 17 Dec, 2008
6:
Non IT people targets only on IT. They think that IT peoples are checking their mail and are getting their salery. If this financial crisis reduce their salery means they will know the pain.
Posted by:Pradeep Sundaram
- 17 Dec, 2008
7:
It is good that IT & ITES is comming down. I feel it should come down more so that Non-IT & Non ITES services people can survive. People have given so much importance to IT & the following sector where Non IT sectors were neglected. I feel happy for the Non-IT sector employee. From past few years I have seen the salaries to given to IT sector & top most executives were given in 7 figures salaries & for MBA given more salaries. MBA's have really spoilted the finances, HR & other departments. It is like MBA are given more importances than Non MBA. Atleast no Govt. has to understand that IT is not only the growth for any country. More than IT there are other sectors. Prices for all things have up so much that only IT can effort to pay others can pay.
Posted by:tuei
- 17 Dec, 2008
9:
EVen salary cuts to the tune of 20-25% is justifiable in the current economic scneario. And it should be across the board.
Any sensible employee his is much much better than laying off people.
Any sensible employee his is much much better than laying off people.
Posted by:ravi
- 16 Dec, 2008
Beautiful and dress selection, please go to Dresses
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