In the midst of apprehension fueled by global recession concerns, leading IT players in Bengaluru are implementing substantial cuts in annual salary hikes and promotions for their employees. Infosys, a prominent tech giant based in Bengaluru, has granted its staff a hike of less than 10 percent this year.
This trend extends to global companies headquartered in the US and Europe, which have a significant presence in Bengaluru. The initial expectation that this phase, which commenced a year ago, would conclude within six months has been surpassed, compelling IT firms to take drastic measures in salary adjustments.
Newcomers are excluded from receiving salary hikes this year.
Previously accustomed to 20 percent annual salary hikes and up to 50 percent for those who were promoted, IT companies are now halting promotions and providing increments of 10 to 20 percent for those who did receive promotions this year, according to an IT professional from a US-based company.
This situation bears a striking resemblance to the challenging period between 2007 and 2009, during which the IT sector experienced severe setbacks.
With automation and Artificial Intelligence (AI) encroaching on job roles, IT professionals express concern, as revealed by a senior HR manager from a reputable tech company. Uncertainty prevails regarding when this phase will conclude and the prosperous days will return. During the peak of the pandemic, the demand for skilled IT employees soared, with companies offering enticing incentives such as advance bonuses and luxury gifts like BMW bikes. These seemingly idyllic times now appear to be a distant memory.
Nevertheless, seasoned workers assert that companies that weathered previous recessionary storms in the IT sector will emerge successfully once again, deeming this a natural phase in the industry.
Infosys, in its communication to employees, expressed gratitude for their unparalleled support and efforts in overcoming current challenges and ensuring success in all aspects, according to reliable sources.
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