Boring Infosys To Offer Muted Salary Hike, Focus On The Digital Requirements

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India’s top tech giant, Infosys, brings no surprises in the performance-based yearly increment. Reports state that this year too, the salary hike of senior executives will remain rather muted – 3% to 5% only – and is likely to be more inclined towards encouraging digital projects. Although most employees received their increment in the month of April, the senior level hike was expected to take place in July, which did not happen. Infosys is expected to roll out the increment for the senior level executives by January now. It has also been observed that the boundaries for performance-based increments have become much sharper.

Sources have reported that the budgets were being finalised and that the hiking process was underway for those who are called the title holders like –

  • Associate Vice Presidents (AVPs)
  • Executive Vice Presidents (EVPs)
  • Senior Vice Presidents (SVPs)

It has been approximated that there are about 500 senior level executives at Infosys under such ranks. About 34% of the total number of rank holders may be promoted. Companies like Infosys seem to be more inclined to performance-based increments because of the changes that have started to occur in the IT industry.


Supposedly, Infosys linked top executive compensation to digital performances, adjacently to traditional metrics like revenue and operating margins. The new metrics seem likely to be implied to other title holders, both on sales and delivery branches. Such change in the demand of services and developments, as well as the traditional working legacies, has resulted in the budget being redrawn so as to put in more efforts into reaching out to the digital prospects of services.

Peter-Bendor Samuel, CEO of IT advisory Everest group, has stated that companies like Infosys are making an effort to deal with the bias of traditional work. He has stated that digital work is often more complicated to deliver as well as it tends to consume the existing legacy work.

It has been affirmed that companies are looking to buy digital over legacies of the tech service provider companies. Due to such a change in the market of tech services, companies like Infosys, have to address this bias amongst their teams in order to grow. The change in the process for hikes and compensations has come as a great solution to tackle this concern. The senior employees are under immense pressure to turn their teams into fulfilling the digital needs of the tech market.

The Chairman of Infosys recently stated that Infosys is boring again, and it’s a good thing. He was reportedly pleased with Infosys’ CEO Salil Parekh, under whom Infosys is seemingly on a stable and forward-looking path. Reports that back-up this claim suggests that the Bangalore-based company’s shares are up almost 30 per cent this year, compared with a 3.1 per cent gain in 2017. In the latest quarter, Infosys booked more than $2 billion in deals and net income topped projections.

Nilekani quoted, “The future of India’s IT services is bright because all over the world, the businesses and even governments are going through a huge digital transformation”.

This jut adds to the fact that the senior employees are facing a challenge to adapt the new digital transformations that have started to take over the entire IT industry. This pressure is then passed onto line managers through targets, directives and compensation changes.


Apparently, cognizant has also taken similar measures to attune senior employees into adapting to the requirements of the swiftly changing and demanding digital world. Reportedly, 200 employees had to be let go off at the director level. The previous year a voluntary parting scheme was offered to about 400 employees. Seemingly, the remaining employees are expected to be promoted into more influencing roles. In fact, Capgemini employees had even run a campaign #CapgeminiBetraysEmployees showing their utter disappointment with the sparse increment.

As a conclusion, it is observed that tech-service providing legacies like Infosys, are having to mute their hikes so as to focus more on digitalizing the services provided, especially due to the massive change in the market as well as the demands of users and investors.


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