IT companies of moderate scale increase salaries more than tech giants in competitive competition for skilled labor
In the dynamic landscape of India's IT sector, recent developments have brought about some intriguing shifts in salary trends.
Mid-sized firms are leading the charge, with AI skills seeing salary raises of around 8-10%. This is a notable increase compared to large IT firms, where the hikes seem to be slowing down in response to global macroeconomic pressures and AI-driven cost-efficiency stress.
These mid-size companies are offering relatively better pay increases, and they are more agile in decision-making and linking compensation to emerging technologies. Recruiters in this segment are advised to tie incentives to upskilling, growth opportunities, and value-based performance, as suggested by industry expert Mallick.
Candidates are also encouraged to look beyond traditional degrees and gain immediately applicable skills in both tech and non-tech domains. This approach could potentially open up opportunities in these mid-size firms.
Meanwhile, Dhanlaxmi Bank is planning to deepen its focus on retail and MSME sectors, and expand its presence in Tier 2, 3 cities.
In the IT sector, companies like KPIT Technologies, Coforge, and Hexaware are quoting salary increments in the 9-11% range, while larger players like Tata Consultancy Services and Infosys are offering smaller raises of 4.5 to 7%.
Accenture, however, is offering remuneration higher than that of India's mid-size IT companies for many job functions. Even within Accenture, employees of the associate manager level and upwards are getting 3-13% hikes.
Experts predict that premium AI skills will attract higher raises, while broad-based increases will stay moderate. However, stagnant pay in AI roles may erode morale and retention, according to Sarojbit Mallick.
The average range of salary hike in India is expected to remain in the mid-to-high single digits, around 5-8%. This is a slight increase from the Indian average for salary increments, which is 4-8.5%.
In other news, HCLTech has appointed Amitabh Kant as an Independent Director, effective immediately. Meanwhile, the Infosys board is set to consider a share buyback proposal on September 11.
Modest hikes, deferrals, tighter appraisals, and workforce restructuring suggest growing stress in the industry. Global markets are offering 3-4% salary increments, according to TeamLease Digital.
It's an exciting time for the IT sector in India, with opportunities for growth and development in both mid-size firms and larger corporations. As always, staying adaptable and skilled will be key to navigating these changes.
