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Infosys planning wage increase in April

Infosys planning wage increase in April
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First Published: Thu, Mar 04 2010. 11 18 AM IST
Updated: Thu, Mar 04 2010. 11 18 AM IST
Mumbai: Infosys Technologies, India’s No. 2 IT services exporter, plans to raise wages for all its staff in April on a rebound in demand for outsourcing services, a spokeswoman said on Thursday.
Infosys and its rivals such as Tata Consultancy Services and Wipro had put off their annual wage hikes in April last year as global recession crimped investments on technology services by their clients.
Nasdaq-listed Infosys, which has a market value of more than $33 billion, announced wage rises in October last year for this fiscal year ending in March.
“Yes, we are considering a wage hike in April. We expect business to be normal in the coming year and as in a normal year, we give hikes every April,” the Infosys spokeswoman said in an e-mailed statement.
“The hikes will be across the board,” she said, adding the quantum of the hikes would be decided in April. The Business Standard daily reported, without quoting sources, Infosys was planning 8-12% wage increase.
Shares in Infosys fell as much as 1.7%, also weighed down by a rise in the rupee to a six-week high.
High wages and a stronger rupee can crimp the profit margins of the IT services exporters, who get bulk of their revenue from the United States.
The Infosys spokeswoman said the Bangalore-based firm would not be able to quantify now the impact of wage inflation on the profit margins.
By 11:18 a.m., Infosys was down 1.5% at Rs2,620, while the main Mumbai market dropped 0.3%.
The Business Standard said Tata Consultancy and Wipro were also planning salary increases between 8% and 12% for the financial year beginning in April on improved business environment.
Wages at Indian software companies had been rising by 10-15% annually before the slowdown, as outsourcers struggled to keep staff from being poached by global rivals such as IBM and Accenture who hire by the thousands in India.
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First Published: Thu, Mar 04 2010. 11 18 AM IST
More Topics: Infosys | Wage hike | Salary | IT | TCS |