Monday, February 10, 2025

Infosys Postpones Salary Hikes to Fourth Quarter of FY25

Infosys, India’s second-largest IT services company, has announced the deferral of its annual salary hikes to the fourth quarter of the current financial year (Q4FY25).

This decision comes amidst ongoing challenges in the global market, particularly in discretionary IT services.

The company’s Chief Financial Officer, Jayesh Sanghrajka, revealed that while some increments will take effect in January, the remainder will be rolled out in April 2025.

Infosys Salary Hike Postponed: Background and Context

The decision to defer salary hikes is a response to the current economic environment, characterized by weakened client budgets, cautious discretionary spending, and persistent macroeconomic headwinds.

Infosys had previously implemented salary revisions in November 2023, but the delay in this year’s increments highlights the ongoing volatility in the global market.

Despite the deferral of salary hikes, Infosys reported a 2.2% sequential increase in net profit for the second quarter, amounting to Rs 6,506 crore.

The company managed to improve its margins by 10 basis points, supported by lower onsite costs, better resource utilization, and enhanced operational efficiency.

These measures have been part of Infosys’ broader strategy to maintain profitability and control costs in a challenging economic climate.

Industry-Wide Impact

Infosys is not alone in its decision to defer salary hikes. Other major IT players, including HCLTech, LTIMindtree, and L&T Technology Services, have also opted to delay pay raises during the second quarter to manage costs and sustain profitability.

This industry-wide trend reflects the broader uncertainty in global demand, particularly for discretionary IT services.

From an employee perspective, the current stagnant job market appears to have reduced concerns about heightened attrition due to deferred pay increases.

Selective increments continue to be offered by certain delivery teams to high-performing employees, particularly in specialized fields such as artificial intelligence, where retaining top talent remains crucial.

In today’s uncertain economic environment, many employees view holding on to a job as a significant advantage.

Infosys Project Maximus and Cost Efficiency

Infosys has been implementing its cost-efficiency initiative, Project Maximus, which aims to enhance operational profitability.

This project has become a key part of Infosys’ margin management strategy, helping to mitigate potential margin erosion due to seasonal furloughs and reduced working days.

Analysts from Motilal Oswal Financial Services predict that while Infosys’ margins may face pressure in the December quarter, factors such as improved pricing, optimization of subcontractor expenses, and Project Maximus could help offset this pressure.


Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube. To get the latest news updates, subscribe to our channels. WhatsAppClick HereGoogle NewsClick HereYouTubeClick Here, and LinkedIn: Click Here.

Editorial

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Deloitte, PwC, EY, KPMG Outpace Global Growth for India Divisions

The Indian divisions of Deloitte, PwC, EY, and KPMG...

EPS-95 Higher Pension Update: Less Than 1% Cases Settled So Far

Supreme Court Ruling and EPFO’s Higher Pension Rollout The Employees’...

Strong Job Growth and Salary Increases Expected in IT Sector

India's IT sector is on track for significant growth,...

Must Read

Top 8 giants restrict employees from using ChatGPT: Why?

IT giants have mixed reactions over employees using ChatGPT....

Essar Group HR Head, Kaustubh Sonalkar on HR priorities in Next Normal

Rendezvous with Kaustubh Sonalkar Group President – Human Resource,...

HCL Technologies to Hire 3000 People

HCL Technologies to hire 3000 People in Vietnam over...

Delhi govt hikes minimum wages, new rates from October 1, 2023

The Arvind Kejriwal-led Delhi Government has hiked the minimum...

IIT Bombay clarifies that only 6.1% of its students are seeking jobs

As per a Hindustan Times report, around 36% of...

The future of performance management lies in empowering employees – Shweta Mohanty

Rendezvous with Shweta Mohanty, Vice President and Head- HR,...

MPL raises $500,000 under its Employee Investment Plan

MPL raises $500,000 under its Employee Investment Plan E-sports and...

Dr. Aquil Busrai on HR Challenges in Hybrid Work Model

Dr. Aquil Busrai CEO, aquil busrai consulting and former...

Related Articles

Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus