ITeS salaries rise by 18%

ITeS salaries rise by 18%

By agencies   |   Tuesday, 14 March 2006, 08:00 Hrs
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MUMBAI: A new report today said that IT and ITeS (IT-enabled services) companies have expanded to tier II and III cities, and their business has grown to deliver high-end services in the value chain.

The report by Nasscom, and Hewitt Associates said the average increase in salary levels in the ITeS sector is between 16-18 percent. The National Capital Region (NCR) which includes New Delhi, Noida and Gurgaon and Bangalore have the highest increase in salary levels, with each reporting a 3-6 percent increment over the national average.

Most organizations do not have a very high differentiation in compensation across locations. Those that differentiate pay based on locations primarily align it to attraction and retention challenges in the location and cost of living differences.

The ‘Nasscom-Hewitt Total Rewards Study’ says in 2005 players in the industry signed million dollar deals and saw off shoring of large portions of work to India by foreign companies. Pressure on talent and profitability has increased and companies looked at ways to establish a competitive advantage.

Sunil Mehta, vice president, Nasscom, said the industry has matured and is moving towards a higher specialization in fields like recruitment, employee rewards and compensation. The findings highlight these trends, as well as a market analysis of employee compensation and HR practices in the industry.

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