Companies like MindTree and iGate expect a moderate hike in wages in the coming year because of the depreciation of rupee against dollar.

Ajith Issac, MD and CEO of Ikya HR solutions says, that the macro-economic uncertainties from Europe and the U.S. could have an impact on next year’s pay level hikes but not on hiring. "Salary hikes could be conservative in the coming year. People have accepted that uncertainties from the Europe will continue for a while. Although the domestic demand in India is high, inflationary pressures could have an impact on business decisions", he said. Because of these effects, hiring at the entry level might be affected. The companies are going to reduce the bench size and award more jobs on contract basis to save costs. He said, “This could also lead to more temp staffing; in fact, temp staffing is likely to double up in the coming year.”

In denial to this, the Indian IT services industry from global securities and investment banking group Jefferies, stated that salaries may not come down in the coming year even as the industry shifts to a structurally lower growth level as companies need to be remunerative in order to attract employees to IT versus other competing sectors in the growing Indian economy.

Well as a consequence, experts are saying that because of attrition rates coming down over the next year, half the employees will be reluctant to switch jobs with the global eco-environment being uncertain.