Salary hikes in IT sector to be below techie expectations
14 Jan 2011
There may some disappointment for techies who have been expecting steep salary hikes this year with revenues in the information technology (IT) sector registering double digit growth.
According to TV Mohandas Pai, member of the board and director, human resource, Infosys Technologies Ltd, contrary to expectations based on solid revenue growth of IT firms, 2011 salary hikes would not be as high as in the last year.
Pai said yesterday that even though business volume had grown, pricing had not kept pace. He added that he did not see a hike of more than 8 per cent to 10 per cent in the industry. He was speaking on the sidelines of an event to announce Infosys' third-quarter results.
Peak years usually see average salary hikes of around 15 per cent which could be as high as 20-21 per cent. Pai's perception is shared by human resource consultants and placement firms.
Meanwhile, in anticipation of good times ahead IT companies seem to be bulking up on workforce with Infosys to hire 26,000 freshers this year, against 20,000 last year. The company is likely to significantly raise its hiring in the next fiscal.
The IT bellweather, though continues to face a people challenge despite signs of improving prospects. The company hired 11,067 employees in the quarter, but 5,756 left the company, leaving the net addition at 5,311.
