Initially benefiting from a pandemic-induced digital services boom, India’s $245 billion information technology industry has been facing challenges in recent quarters as clients cut spending on discretionary projects amid inflationary pressures and global economic uncertainty. Salary expenses constitute the largest contributor to costs for IT companies, typically accounting for over 60 percent.
Wipro is reportedly considering skipping salary hikes for “top performers with higher compensation” in its largest business line during the upcoming round of salary revisions scheduled for December. The decision comes as the company grapples with various challenges, including weak client spending and fierce competition from larger rivals.
Peter Bendor-Samuel, CEO of Everest Group, notes that the additional attrition could help rebalance benches to meet demand and bring costs back into balance with demand.