In the midst of global recession concerns, major IT companies in Bengaluru are implementing significant cuts in annual salary hikes and promotions. Infosys, a prominent Bengaluru-based tech giant, has granted its employees less than a 10% salary increase this year. This trend extends to global players headquartered in the US and Europe with a substantial presence in Bengaluru. The austerity measures, initiated a year ago, were anticipated to conclude within six months, but the prolonged economic challenges continue to compel IT firms to take drastic actions. New employees are excluded from this year's salary hikes. The current situation contrasts with the industry's past practice of offering 20% annual salary hikes and up to 50% for promoted individuals. The scenario, reminiscent of the 2007-2009 recession, raises concerns among IT professionals, particularly with the impact of automation and artificial intelligence on job security. Despite uncertainties, experienced workers believe that companies resilient through previous recessions will navigate this phase, considering it a natural cycle in the IT industry. Infosys, in communication with its staff, expressed gratitude for their support during these challenging times.
Key Points:
1. Against the backdrop of global recession fears, major IT companies in Bengaluru, including Infosys, have implemented substantial cuts in yearly hikes and promotions for employees.
2. Infosys, a Bengaluru-based tech giant, granted its employees less than a 10% hike this year, reflecting a trend seen among global players headquartered in the US and Europe with a significant presence in Bengaluru.
3. This cost-cutting phase, initiated a year ago, was initially expected to conclude in six months but has persisted, compelling IT firms to take drastic measures regarding salary hikes.
4. New employees are not being considered for hikes this year, marking a significant departure from the previous practice of substantial yearly increments.
5. Formerly, IT companies provided 20% yearly hikes and up to a 50% raise for those who were promoted. This year, promotions have been put on hold, and for those promoted, the hikes range from 10% to 20%.
6. The situation parallels the challenging period between 2007 and 2009, characterized by a severe impact on the IT sector.
7. Concerns among IT professionals are heightened due to the role of automation and Artificial Intelligence (AI) in job displacement.
8. The uncertainty surrounding when the challenging phase will end and the job market will rebound is a source of anxiety for IT professionals.
9. During the initial stages of the pandemic, the demand for skilled IT employees was high, with attractive incentives such as advance bonuses and expensive gifts. However, the current situation starkly contrasts with those prosperous times.
10. Despite the challenges, experienced workers believe that companies that successfully navigated previous recessions will endure and recover, viewing the current downturn as a natural phase in the IT industry. Infosys, in its communication to employees, expressed gratitude for their support and efforts to overcome challenges.
(With Agency Inputs)
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