IT industry braces for salary cuts, hiring freeze

IT industry braces for salary cuts, hiring freeze
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First Published: Wed, Apr 22 2009. 11 25 PM IST
Updated: Wed, Apr 22 2009. 11 25 PM IST
Bangalore: These are not the best times for those working in India’s information technology or IT companies, as the top firms have said there would be no pay hikes, no promotions and cuts in variable pay.
Infosys Technologies Ltd, the country’s second largest software services firm, initially said it would pare variable pay of its top management but later announced that all employees have to take such a cut, ranging from 12-42%. Also, “this year, because of the economic situation, we decided there will not be wage increases or promotions”, said V. Balakrishnan, the firm’s chief financial officer.
Industry leader Tata Consultancy Services Ltd, which cut variable pay by 5-10%, will also not give raises. “Salaries will be whatever we have been giving in FY09,” said human resources (HR) head Ajoy Mukherjee.
Pratik Kumar, HR head at third largest Wipro Ltd said: “To clarify, we have no plans to either increase or cut salaries.”
Vineet Nayar, chief executive of HCL Technologies Ltd, said: “Irrespective of how the economy would turnaround, we will not lay off.”
cnbctv18@livemint.com
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First Published: Wed, Apr 22 2009. 11 25 PM IST