Wipro announces wage hike of 6 to 8 percent “Only”

indian it companies alok kumar
After Infosys, it is Wipro’s turn to talk about salary increase. TK Kurien announced that employees will be surprised that Wipro choose to give hike inspite of hard times ahead. I truly believe that even if Wipro had a thought of holding salary hikes, Infosys battering by employees, press and Dalal Street would have shaken them up to their bones.

Employees had a mixed reaction. While many thanked the management for their gesture, many others choose to behave like unions asking for more giving historical profits and inflation as the reason for their dissatisfaction.

“ It is certain that the market ahead for body shopping business, BPO and IT business will be purely on cost and ability to be flexible with customers…”

The alarm is not about lower hikes by IT Industry, but back door exits which are lesser known. Last year Infosys eased out about 4500 employees and this year too it will be done. Press will certainly be managed to ward off any further negative publicity. Wipro has negative employee growth and not so good results. Negative employee growth is not possible without firing employees and holding on to new recruitments which is an alarming sign. Wipro has certainly eased out several employees and have held back offers to several new campus offers like many other IT companies. Both Infosys and Wipro have been always trying to get premium in market for their brand and perceived quality. This is now not possible and market is not supporting them anymore.

It is certain that the market ahead for body shopping business, BPO and IT business will be purely on cost and ability to be flexible with customers. This is certain to bring profits down from above 20 percent year on year to less than 10 percent in next few years. It is normal to have less than 5 percent margins in non Indian IT companies and this is going to be normal here too.

This is time to brace up and become realistic.

Have something to add? Share it in the comments.

Picture Credits : Techshout, For representational purposes only

Alok Kumar

Alok Kumar is Managing Partner of SRKay Consulting group, a private equity company, nurturing innovative ventures. Alok also serves on the board of ICCL (Indian Clearing Corporation Limited - A subsidiary of BSE- Bombay Stock Exchange) as an external advisor for technology and information security. Prior to this, Alok had been Managing Director of Sears IT & Management Services India Private Limited (SHI) since its inception in December 2009 and served in the same position till very recently. Having been in senior IT management positions in Fortune 500 companies, Alok has won several national and international awards. Alok is instrumental in planning and setting up SHI and thereafter growing it to a multi-locational thousand-plus people organization. Over the last five years, with his strategic vision, Alok helped SHI grow roots in India, develop and support technology applications and infrastructure across core mainframe, cutting edge e-Commerce and big data technologies. With his unique people-oriented transformational leadership style, Alok turned SHI into one of the most valued investments of Sears, garnering great ROIs, and creating value much beyond cost arbitrage. Under his tutelage, SHI has filed two patents and is recognized widely for its best practices in various areas, the latter, currently featured in Indian Institute of Management (IIM) case studies. SHI also became a CMMI Level 3, PCMM Level 3, and ISO 20000 certified organization. Alok is a widely acclaimed corporate leader in India today. He regularly participates and leads various forums as a keynote speaker and is an author of several books in different genres. Alok has several awards to his credit. He is particularly known in the industry for his people management skills and innovative ideas in improving the productivity of employees through unique people practices. He has been credited with the following industry awards: ¬ Emerging Leader of the Year award 2013 by IndiasGreatest.com ¬ Game Changer CEO of the Year 2013 (SHRM) ¬ CIO 100 - The Bold CIOs - 2008 (Reliance Infosolutions) ¬ CIO - Ones to Watch Award 2008 (Reliance Industries) ¬ Extended Manager Award - CIOL 2004 (Tata Teleservices) As an able leader of SHI, Alok got SHI recognized widely in the industry with the following several awards: ¬ CII Award for HR Best Practices in 2014 ¬ Global Excellence in Outsourcing Award - AIOP (Phoenix 2013) ¬ IT Innovation Award (Design & Engineering) - Computer Society of India 2012 ¬ Golden Company of the Year - Economic Times 2011-12 ¬ 7th Employer Branding Awards - World HRD Congress (Mumbai, India) 2013: • ‘Asia’s Best Employer’ Award • ‘Best HR Strategy’ in line with business • HR Leadership Award • Talent Management Award by Bloomberg TV India ¬ Employer Branding Awards - World HRD Congress (Singapore, Asia) 2013: • 7th rank in ‘Asia’s Best Employer’ award • Award for ‘Best HR Strategy’ in line with the business • HR Leadership Award Other recognitions: Alok had served on the distinguished panel of NASSCOM's GIC (Global In-house Centers) National Council members. The council members play a key role in major initiatives of the industry and include the torch bearers of IT industry as panel members. Books and Papers: Alok is an established author, with three books to his credit. Alok’s third and latest book, a novel, “The Spy from Unaula” is a 2015 publication. A handwriting analysis enthusiast, Alok collaborated with his wife Nandani on the book, “Handwriting Speaks” in 2006. “Value Sourcing – Future of IT Outsourcing” was co-authored with Keith Sherwell (currently CIO, Altice USA) and was released in 2013. Alok also researched and published two whitepapers: a. “Creating next generation captives” talks about the best practices that are helping generate higher value from the IT company captives.

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1 Response

  1. LAVANYA.G says:

    I get to the it field.wipro is nice company…..

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