IT companies, including HCLTech and Infosys, adopt cautious salary strategies
India’s IT sector is facing a slowdown in wage hikes as major players like HCLTech and Infosys delay or reduce increments amid global demand uncertainties and cost-cutting measures.
HCLTech, India’s third-largest IT services company, has partially rolled out salary hikes for junior employees in the October-December quarter, offering modest increments of 1-2% for most and 3-4% for top performers. This falls short of the management’s earlier promise of 7% average pay hikes and 12-15% raises for high performers. While the increments have been implemented for junior staff in bands E0, E1, and E2 (up to 10 years of experience), mid-level and senior employees in the E3 band and above have seen no salary revisions for at least two consecutive years.
Infosys, India’s second-largest IT services firm, has similarly deferred its annual salary hikes to the fourth quarter of FY25. The company last implemented pay hikes in November 2023, but ongoing macroeconomic pressures have prompted a phased approach to increments, with some hikes effective in January and the remainder planned for April.
This trend reflects the broader challenges faced by IT firms in managing costs and defending margins amid weak discretionary spending, delayed client budgets, and overall uncertainty in the global economic landscape. Other companies, including LTIMindtree and L&T Tech Services, have also delayed increments in FY25, signaling an industry-wide shift in wage policies.
The cautious approach comes as these firms navigate a tough demand environment, focusing on sustaining profitability while balancing operational costs.
