Infosys, known for its higher average annual increments, saw average hikes fall to 9% in FY24, down from 14.6% in FY22, with FY23 noting 9.9%. TCS reflected a similar trend, granting average hikes of 7-9% in FY24, compared to 10.5% in FY22. Wipro employees experienced a median remuneration hike of 9.4% compared to the previous year.
“We are one of the few companies to give a hike in April this year. We will continue to do that,” said Milind Lakkad, TCS HR head, during a recent interaction with TOI.
Tech Mahindra and HCLTech have maintained average hikes between 5% and 7%. HCLTech reported an average hike of 6.8% in FY22, which dropped to 5% last year. Tech Mahindra’s average increment stood at 5.6% in FY24, down from 6% in the previous year and 5.2% during the pandemic year when other firms provided double-digit raises.
Explaining the trend, Pranshu Upadhyay, regional director and head of India technology practice at recruitment consultancy Michael Page, cited reducing margins and increased workforce and business costs. He also emphasized the availability of entry-level talent in India equipped with generic tech skills. “These companies still want to maintain a good cost arbitrage and wage is one of their biggest costs. Even marginal cuts in the same lead to a bigger absolute impact,” Upadhyay added.Mansee Singh, careers leader at Mercer India, mentioned that companies are opting for differential hikes to retain critical talent as overall salary increments slow down.Tech professionals with specialized skills, especially in deep tech, continue to secure higher salary increases. Milind Shah, MD of Randstad Digital in India, stated that professionals in AI, ML, cybersecurity, cloud computing, and data analytics are seeing upticks in the range of 12-15%. “As companies across sectors continue to focus on digital transformation initiatives, these professionals are becoming more relevant, and organisations are seeing the value in investing in them. In the next fiscal year, we expect more green shoots in compensation as talent requirements in specialisations like AI, ML, cybersecurity, cloud computing, and data analytics will continue to grow,” he said.
Infosys and Tech Mahindra did not respond to TOI’s queries as both companies are presently in a ‘silent period’ ahead of their June quarter earnings announcements.
This overall trend reflects a cautious approach by Indian IT firms amid economic uncertainties, balancing the need to retain key talent while managing increasing business costs. The shift from double-digit raises to more modest increments aligns with a broader focus on cost management and strategic investment in specialized skills crucial to digital transformation.
(With ToI inputs)