News: Mid-tier IT cos may cut pay hikes, hiring on US, Europe woes

Compensation & Benefits

Mid-tier IT cos may cut pay hikes, hiring on US, Europe woes

Faced with continuing uncertainty in their largest markets, US and Europe, mid-sized technology outsourcing companies such as Infinite Technologies, Mastek, Mahindra Satyam and Infotech Enterprises will give out tepid pay hikes and cut down on their campus hiring in 2013. IT firms hire close to 1.5 lakh students from campuses every year. But with large companies unable to predict near-term growth with any degree of certainty, industry watchers say they are doubtful about robust growth among larger IT companies, let alone tier-II firms. For instance Hyderabad-based Mahindra Satyam, for instance, said it plans to cut down on its campus hiring by 50 percent in the coming year due to the unpredictable business environment. As for pay hikes, compared to double-digit pay hikes till a few years ago, salary increments in India's $100-billion IT industry has been consistently declining since the financial crisis of 2008, from which US and Europe is yet to completely recover.

Faced with continuing uncertainty in their largest markets, US and Europe, mid-sized technology outsourcing companies such as Infinite Technologies, Mastek, Mahindra Satyam and Infotech Enterprises will give out tepid pay hikes and cut down on their campus hiring in 2013. IT firms hire close to 1.5 lakh students from campuses every year. But with large companies unable to predict near-term growth with any degree of certainty, industry watchers say they are doubtful about robust growth among larger IT companies, let alone tier-II firms. For instance Hyderabad-based Mahindra Satyam, for instance, said it plans to cut down on its campus hiring by 50 percent in the coming year due to the unpredictable business environment. As for pay hikes, compared to double-digit pay hikes till a few years ago, salary increments in India's $100-billion IT industry has been consistently declining since the financial crisis of 2008, from which US and Europe is yet to completely recover.

Source: The Economic Times

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Topics: Compensation & Benefits, #Updates, #TotalRewards

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