> no more soaring salaries in IT

Agnel

MNCs are readily adopting measures to prevent their employees from jumping the ship and data compiled by global human resources consultancy firm, ECA International, shows that Indians are going to get the highest salary hikes in 2008.

However, the data somehow does not seem to include the IT sector, in which fat pay packets could soon be a thing of the past.

Sources say that IT majors — Wipro, TCS and Infosys — are planning to reduce the salary hikes this fiscal year (starting April 2008) to almost half of what was given in 2007. The hike will be a mere 7 to 8 per cent on an average as opposed to the 15 per cent that was given last year.

Soaring profits and talent-retention are obviously not a consideration for these software firms this year, who are also planning to cut down the hiring by almost 20 per cent this year. The idea is to more efficiently utilise the staff that already exists.

Industry insiders say that reason behind this slashing of salary hike percentages this fiscal could be due to a likely recession in US. Also the rising rupee against the dollar has made a lot of difference.

Contradictory Trends

Contrary to what industry insiders say, leading IT research and advisory company — Gartner Inc — has stated that the Indian IT services market is pegged to grow to $10.73 billion by 2011 at a five year compounded annual growth rate (CAGR) of 23.2 per cent.

Gartner said that the growth in the IT industry would be driven by agility, cost takeout and innovation.

Growth of the IT services market is primarily being driven by economic growth, high growth in small and midsize businesses, Government projects and increased customer focus.

"Many IT organisations are planning to spin off their IT organisations into an independent entity to capture the growing opportuniites", Gartner's Senior Research Analyst, Arup Roy was quoted by news agencies as saying.

The market segments that are expected to witness strongest growth are consulting, IT management and business process management (BPM) services with five year CAGRs of 28.1, 23.8 and 27.1 per cent respectively.

Meanwhile, ECA International has said that Indian employees are expected to get the biggest paycheck increase globally this year, primarily driven by inflationary situations associated with the robust economic growth in the country.

"Salary increase in India is expected to be the biggest this year as companies have to keep in mind the inflation for their employees to maintain a good economic stature," ECA International General Manager Lee Quane was quoted by agencies as saying.

Source : IT sector deflates, no more soaring salaries

Mr Anand, ur views on this please

Ninja

Read this in economic times couple of days back...

Agnel

^^ I agree to what KK said once, most of the sw guys are idiots and they demand huge amounts of money just because ppl are ready to pay

This would serve them right

KingKrool

Most of the software companies are overstaffed - for one, they have a huge bench strength, which is OK, but on top of that, they assign too many people to a single project.

Agnel

^^ actually there are some reasons behind it
1. the folks don't have enuf experience and qualification.
2. more the no of ppl in the project, more billing, more money. simple logic

Safin

Fact is that IT encompasses couple of things. The development and the services. A downward world economy will put stress on both but at the end of the day if someone is going to offer you similar work atlesser costs, people will go there. China is emerging in that, and even if the quality is low right now, it will grow.

Apart from that what KK said is pretty much right. Its a fact that a lot of time is wasted by overstaffers and the companies can and do have the possibility of cutting jobs and maintaing the same quality of work by getting the employees to work harder and for their full time

(oh noes,, no one will hang around TE and FE then, so maybe thats not a good idea for me

)

xXx

Salaries Hikes......More Hikes.....More Job Hopping, Its a really good step by the IT companies to cut down the Hike from something around 25-30% hike to 7-8% hike.....
The HR was really having a tough time to retain staff in IT sector. The competition was tremendous. Companies like Patni, TCS were absorbing people like anything, & certainly they have realised it they have overdone it, (~ to Public sector) hence the strategy now is to concentrate on providing the current employees all the facilities & keep them happy.

Between when I was working in an IT company in HR, I observed the IT guys were slogging off to get their work done, but in the mean time, they were having their time of their life, they used to be in office by 11am, work-play in the day time & as soon as its 5.30-6pm they used to get seriously in the work. Me myself was having fun after 6pm in the office - like playing MINI GOLF, BasketBall, Table Tennis etc....when those poor IT guys were working

also if you do not provide them these luxuries, they wont bother to join also....
also the first thing they ask is - "Is the company CMMi certified??" "What is the package they are offering???" only fewer people were interested in their profile growth & not in package. Those people are genuine in their work.

HR search for those kind of people & always try to retain them

b/w I know you'll may not agree to these points, cos you dont have any idea what HR does in their organizations, many of times they may seems to be not working to you, but the pressure they work under is tremendous.

Agnel

^^ i have a cousin who works as an HR and i know what she goes thru. I was fighting with my company folks for a good project to work with where i'll learn more than earn, they offered me onsite crap in a good for nothing project, I rejected and eventually quit the company for my own onsite fun

.
Alright, back to the reality, many folks are real fools who don't even know what they are doing. they waste time doing all what is not required and blame for over work load. Some of them think just because they have a job and so called experience they demand so high salaries

One more thing is, If everybody maintains proper timins like 9 - 6 things would work alright, but the problem is most of these guys come to office by 11, waste time till 4 or 6 then work till late night, some have their reasons as the client comes in only then, others, to play the fool.