Tuesday, March 10, 2009
IT firms see low or flat salaries for 2 more years
Against expectations that the job market and compensation levels might begin to show signs of recovery by next year, senior executives in the country's top information technology companies expect compensation levels to remain low over the next two- to three years. "The market is cold and there are fewer jobs, for the next two or three years, salaries will be low," T.V. Mohandas Pai, member of the board and director of human resources at the nation's second largest software exporter Infosys Technologies, told Hindustan Times.The economic slowdown has adversely affected all sectors, including information technology, which relies heavily on demand in the West, especially the United States, which is India's largest market. "Good people will not be laid off but the key challenge is compensation," Pai said.Tata Consultancy Services, India's largest software exporter which employs over 1,00,000 people, is also eyeing a scenario where wage hikes will not be significant. "We expect salaries to remain flat in financial year 2010 while demand for specific skill sets will drive salaries over the next two-three years," a TCS spokesperson told Hindustan Times.However, experts at staffing firms, interpreting industry statements, say IT companies probably do not want to set high expectations for their employees amidst uncertain economic conditions and that the job market might well improve by the end of the year. "We expect the market to improve by the end of the year and organisations probably do not want to raise their employees' expectations," said Rohit Ramani, director at staffing firm EmmayHR, part of the Dutch Randstad group.