Double-digit pay hikes for techies this year
BANGALORE: The salary increment season has just started. And techies have something to look forward to. In contrast to the salary cuts and the single-digit hikes during the slowdown years, increments this year are expected to be in double digits for most.
The surge in demand for IT globally and rising customer confidence have substantially increased the demand for people. A quick check done by TOI found that average increments would be in the 12% to 15% range. People in specialized areas, like the product space, are expected to get up to 20% or more.
Fresher salaries/stipends are already up by 10% to 15% compared to last year. Hires from premier educational institutions have seen 15% to 20% increases this year. Recruiters say the country's top tech firms - TCS, Wipro, Infosys, HCL and Cognizant - are considering a 10% to 15% average hike this year. A senior official at Infosys said the company is looking at a pay hike in June and that it should be in the range of 10% to 12%.
Wipro has just started its appraisal process. An e-mail to employees on Wednesday said the process would be completed by May. Increments are expected to be announced in June-July, and will be effective June 1. Sources in the company said increments would be in the 12-15% range, against 8-12% last year.
C Mahalingam, senior V-P and HR head in Symphony Services, said the situation had improved significantly for IT companies. "Markets are warming up. Customer rates are improving. There is also tension in the talent demand-supply scenario. All these will have a positive impact on increments this year,'' he said.
Roy Joseph, head of HR in the technology product development and sourcing of Mahindra & Mahindra, said that with the economy rebounding quicker that expected, there is additional pressure on retaining the best talent. "There is limited supply of quality talent. That means a scramble for good people. Ultimately, what prompts good talent to remain where they are is the remuneration.''
Mahalingam said that people with 3-8 years of experience have become particularly hot property. That's because business has increased rapidly and has not given enough time for companies to train freshers to deal with these orders. However, increments will remain lower than what they were in the years immediately preceding the global recession. Companies are cautious about the global economic outlook, given the sluggish recoveries in western markets and the problems in Japan and West Asia. Salary hikes this year will reflect that caution.
NAME-DEEPAK KUMAR JHA
PGDM 2nd (2010-12)
The surge in demand for IT globally and rising customer confidence have substantially increased the demand for people. A quick check done by TOI found that average increments would be in the 12% to 15% range. People in specialized areas, like the product space, are expected to get up to 20% or more.
Fresher salaries/stipends are already up by 10% to 15% compared to last year. Hires from premier educational institutions have seen 15% to 20% increases this year. Recruiters say the country's top tech firms - TCS, Wipro, Infosys, HCL and Cognizant - are considering a 10% to 15% average hike this year. A senior official at Infosys said the company is looking at a pay hike in June and that it should be in the range of 10% to 12%.
Wipro has just started its appraisal process. An e-mail to employees on Wednesday said the process would be completed by May. Increments are expected to be announced in June-July, and will be effective June 1. Sources in the company said increments would be in the 12-15% range, against 8-12% last year.
C Mahalingam, senior V-P and HR head in Symphony Services, said the situation had improved significantly for IT companies. "Markets are warming up. Customer rates are improving. There is also tension in the talent demand-supply scenario. All these will have a positive impact on increments this year,'' he said.
Roy Joseph, head of HR in the technology product development and sourcing of Mahindra & Mahindra, said that with the economy rebounding quicker that expected, there is additional pressure on retaining the best talent. "There is limited supply of quality talent. That means a scramble for good people. Ultimately, what prompts good talent to remain where they are is the remuneration.''
Mahalingam said that people with 3-8 years of experience have become particularly hot property. That's because business has increased rapidly and has not given enough time for companies to train freshers to deal with these orders. However, increments will remain lower than what they were in the years immediately preceding the global recession. Companies are cautious about the global economic outlook, given the sluggish recoveries in western markets and the problems in Japan and West Asia. Salary hikes this year will reflect that caution.
NAME-DEEPAK KUMAR JHA
PGDM 2nd (2010-12)
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