Infosys has confirmed that it will increase the salaries of a large number of its employees by 10-13%, with top performers receiving 20-25% hikes. The increments will depend on an employee’s grade, with senior management receiving lower salary hikes as their salaries are already higher. Infosys is also focusing on reducing wage costs by increasing utilization levels, reducing lateral hires, and reducing on-site employees. The company clocked utilization of 76.6% in Q2 compared to 77.6% in the June quarter. The company is also trying to retain talent through faster and predictable promotions for top performers.
it mentions that in September 2022, Infosys declared a net profit of Rs 6,021 crore, which is an 11.1% growth compared to the same period in the previous year. Additionally, Infosys is trying to reduce wage costs by decreasing on-site headcount, which is a big move for the company since it has 75,143 employees abroad. Krish Shankar, the executive vice president and group head of human resources at Infosys, said that reducing on-site headcount would help lower wage costs. Finally, reducing the time it takes for top performers to advance their promotions is also a focus for Infosys, with the goal of reducing the time by 20-30%.
Infosys is also trying to retain talent through faster and predictable promotions, with top performers encouraged to join career development programs. The company aims to reduce the time it takes for good performers to become project managers from a software engineer to about nine years, and even shorter for outstanding performers, such as seven years.
It is worth noting that in 2021, IT services companies announced significant salary hikes and counter offers due to a major skills gap. Infosys also announced two hikes in January and July 2021, but now that the frenzy is ebbing and attrition is declining, the company is focusing on reducing wage costs.
Finally, it’s worth mentioning that Infosys is India’s second-largest IT services company, employing over 345,000 professionals globally. The company recently confirmed that a large part of its employees received salary hikes ranging from 10-13%, with top performers receiving 20-25% increments. These increments will vary depending on an employee’s grade, with senior management receiving lower salary hikes since their salaries are already higher.