IT salaries may not soar much
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source:sify.com
In what could come as a welcome relief to finance and human resources chiefs and not-so-good news for the employees, wage inflation, which was threatening to blunt the competitive edge of India Inc, is now showing signs of easing.
“This year, we are not noticing the kind of wage pressures we had last year. The wages are stabilising and wage increase will not be of the order of the 12-15 per cent (this year’s hike). It will be much less,” S Padmanabhan, executive director, HR, Tata Consultancy Services, said.
TCS is India’s largest private sector employer with over a lakh employees on its roll. A skyrocketing local economy, coupled with the fact that the talent supply pipeline hasn’t really broadened over the last 3-4 years, has led to wage hikes that are many times what can be expected in matured markets. TCS paid 12-15 per cent wage increase this year for its offshore employees and 3-5 per cent for onsite.
Industries like IT were finding their margins coming under pressure with an increasing staff cost on one hand and a strengthening rupee on the other. Now with indications of a stable wage regime, pressure on margins is likely to ease a little.
TCS plans to hire a mind numbing 35,000 employees this fiscal. At 2 per cent of its revenues, TCS’ training budget is not insignificant and the management doesn’t it change much over the next few years. TCS has, under Ignite project, begun to hire science graduates and train them to become software engineers.
The first batch of 500 graduates have finished their training and joined the company. TCS hopes to train a total of 2,000 this year and 3,000 next year under Ignite.
It is planning to set up training centres in Gandhinagar, Bhubaneswar, and Chandigarh. “We are also planning to set up training centres in Morocco and Egypt to tap the French speaking talent base,” S Ramadorai, CEO and MD, said.
