India’s IT services companies may freeze pay hikes and cut bonuses to deal with the business slowdown sparked by shutdowns due to the Covid-19 outbreak globally, replicating moves made during the US financial crisis over a decade ago, senior executives and analysts told ET.
“The crisis will likely negatively affect profits and to the extent that bonuses are tied to firm performance and profitability, they will automatically be reduced. In this case employees are likely to view the reductions as justified,” said Peter Bendor-Samuel, CEO, Everest Group.
