IT professionals may get double-digit hike this year

Riding on the back of better operational performance,
tech companies are likely to dole out higher wage increases for
employees in the current year. After an average 8-10% hikes last
year, the IT staff can expect a double-digit increase in
emoluments this year, industry body Nasscom said on
Wednesday.
The assessment, based on an internal survey of Nasscom
members, indicates that attrition levels and lateral hiring will also
increase.
India's $118 billion infotech industry — the largest private sector
employer in the country with more than 3.1 million on rolls — is
projected to grow 13-15% as against 13.2% last year.
"Industry average hikes will be slightly higher than last year,"
Sangeeta Gupta, VP research at Nasscom, said on the sidelines of
an HR summit in Chennai. She said effective middle managers will
get the best rewards through increased variable pay and
incentives.
Middle management techies will get 11-15% hikes while entry and
senior management will receive 5-10% increases. "These
projections are made based on an internal survey which we did of
our members. We received responses from over 100 firms which
account for over 42 to 45% of IT revenues," she said.
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The IT industry has instituted innovative incentive schemes to
reward performance this year. Some of these includes skill bonus,
zero attrition unit incentive and project-based incentives, she
said.
There will also be a shift in recruitment methodologies undertaken
by companies. "The estimates are we will recruit 1.80 lakh
employees this year (or a 6% increase) of which lateral hiring will
be more than last year," she said.
A back of the envelope calculation shows nearly 3 out of every 10
are lateral hires in the tech industry. "We see a shift in this. There
will be a 10% increase in lateral hires and reduced intake from
campuses," Gupta said. Referrals and recruitments through job
portals will rise.