Bengaluru : Amid gloom against the backdrop of fears of a global recession, major IT players in Bengaluru have enforced steep cuts in yearly hikes and promotions for staffers.
Bengaluru-based tech giant Infosys has given its staffers less than a 10 per cent hike this year.
The scenario is more or less the same with global players headquartered in the US and Europe that have a major presence in Bengaluru.
The phase, which began a year ago, was believed to get over in six months, but it has continued to force IT companies to take drastic measures in terms of salary hikes.
New entrants are not being considered for hikes this year.
IT companies used to offer yearly raises of 20%, and for those who were promoted, the increase would have been 50%. This year, promotions are on hold, and those who did get promoted received raises of between 10% and 20%,” stated an IT specialist employed by a US-based company.
The situation is similar to the dreaded period that the IT sector suffered greatly from 2007 to 2009.
IT professionals are concerned about automation and artificial intelligence (AI) taking away from their jobs, as revealed by the senior HR Manager of a reputable tech company.
“No one can predict when this phase will end and the golden days will return. The need for qualified workers in the IT industry peaked during the Corona phase. Advance bonuses, expensive gifts like BMW bikes, and other incentives were used to entice performers. Now it all seems like a dream,” he remarks.
Nonetheless, seasoned professionals argue that this is a normal stage for the IT sector and that the businesses that were able to weather the worst of the previous recession will do so again.
According to sources, Infosys expressed gratitude to staff members in a communication for their unwavering support and efforts in overcoming the present obstacles and guaranteeing success in every way.
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