The Bengaluru-based firm, which last implemented salary increases in November 2023, typically rolls out hikes earlier in the year. However, sluggish discretionary spending, delayed client budgets, and persistent macroeconomic challenges have pressured IT companies to adopt cost-containment measures, according to the report.
Rivals such as HCLTech, LTIMindtree, and L&T Technology Services have already skipped increments in the second quarter to sustain profitability.
Infosys had announced plans for phased hikes in Q4 during its October 17 earnings call. “Some part of that will be effective in January and the balance will be effective in April,” Chief Financial Officer Jayesh Sanghrajka had said.
The stagnant job market has given IT companies the confidence to defer salary increments as the move is unlikely to trigger resignations, Moneycontrol reported quoting analysts. The report suggests that selective salary hikes are still being offered to top performers in critical areas like artificial intelligence, as individual teams retain budgets to reward exceptional talent.
Infosys Q2 results
The IT services firm expects constant currency revenue growth between 3.75% and 4.5% for the financial year April 2024 to March 2025, higher than its earlier guidance of 3% to 4%.
Infosys CEO and MD Salil Parekh termed it a “huge upward movement” in growth guidance. The upward revision comes on the back of a ramp-up of mega deals.
The company had raised its guidance in the June quarter from the 1-3% range it started the year with.
The article originally appeared on Upstox.
