Shibulal: Dim hope Bangalore, Feb. 17 (Agencies): Infosys employees may get single-digit pay hikes this yearChief financial officer S.D. Shibulal said today, “Right now there is not much expectation. Employees are given increments in April. |
“This year (2008-09), we gave a 14-15 per cent raise to offshore employees, and 3-5 per cent to onsite staff. Next year, the hikes will be lower. Offshore hikes are likely to be in single digits.”
Offshore employees work for clients from the company’s facilities in India, while onsite employees are based at client locations.
About the financial year 2009-10, he said, “The environment is going to be tough. It will continue to be challenging.”
“Once the environment stabilises, in another couple of quarters, pricing and demand environment will also stabilise.”
“There has been no change in deal size. But decisions are getting slower, especially when it comes to discretionary spending,” he said.
Infosys may consider offering a one-time price cut to its clients to help them bring down costs. It may also increase the duration of projects or shift clients to new pricing models, which will change their cost structure. The company may also link contracts with volume discounts to push deals.
The IT major also confirmed that it was actively pursuing acquisitions but did not elaborate.
Infosys plans to increase its revenues from Europe. The company now earns most of its revenues from the US
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