Last week, when the employees of TCS opened their appraisal letters, it was with little anticipation. For most of the mid-level employees, the hike was flat—at 6%. At a time when the standard raise has been 3-6%, no thanks to the falling revenue growth, not many complained. But a few discerning employees noticed that something was a bit off. The compensation structure had changed. As they went through their letters, making calculations in their minds, they realised the company had increased their quarterly variable allowance—the part of the salary that depends on performance and profitability of the business units.
From macro to micro: The fine line India’s IT industry is treading
Forget the macro environment, let’s manage what we can control, is what IT firms are telling themselves
Indian IT firms’ revenue growth has been falling owing to macroeconomic factors such as protectionist policies in the US and Britain’s exit from the European Union
India’s $150 billion IT industry is likely to see muted revenue growth in coming quarters, with clients tightly holding on to their IT budgets
The top IT companies remain healthy with robust cash reserves and more or less stable operating margins
To enhance operational efficiency, IT firms are increasing productivity by automating tasks and re-skilling their employees