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