Newspapers were hitting very hard on Infosys salary hike freeze decision and termed it to be purely an Infosys internal problem and not a reflection of the state of Indian IT industry. Poor Infosys management came under so much media and employee pressure that they are going all out with salary increase decision. CFO even stated that the hike will be single digit hike. What a messy way to handle a simple situation.
TCS and HCL results declared yesterday certainly defied all speculations that anything is wrong with Indian IT. Both the companies posted impressive growth and silenced all critics like me for some time. The question is, for how long?
“The doubt however remains that this gravity defying growth of IT industry in India year on year cannot be a standard phenomenon …”
In reality, Infosys issue is certainly a mirror of the impending larger issues in front of IT companies in India. Some policies of Infosys have certainly hit them hard. Being unrealistic in a market where body shopping of commodity resources cannot be at a premium is being naive enough to ignore all facts. Infosys also kept a distance from Indian customers in India because they considered it not worth the time and money. Companies like TCS and HCL invested very heavily on India opportunities and very obviously, Infosys is now loosing this opportunity as well.
The doubt however remains that this gravity defying growth of IT industry in India year on year cannot be a standard phenomenon. This has to become more reasonable and the changing global scenario has to dump off companies and bodies who do not add value. With more than 50 percent of IT staff in large Indian IT companies are not who adding real value to the customer, this has to get corrected.
Let us wait and see, what Infosys will do and how others will move in to tear off the sheen which Infosys wore all these years.
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