Top IT companies are about to tighten their moneybags

With decreasing revenues, top IT companies in India are struggling to maintain their profits, which they aim to do by improving the proportion of fixed cost projects in revenue and not hiring experienced staff.


There have also been reports about layoffs by some of these companies, which can also be considered as a tool to save money in terms of salary.

Whenever there is a downward shift in revenue, employees and their salaries become the first target from where money can be saved.

Also read: 5 companies that fired employees in 2017

The ETIG analysis of data from top IT companies like Cognizant, TCS, Infosys, and Wipro, shows that the aggregate dollar-denominated revenue increased by just 7% in FY17, a seven-year low, while also decelerating for three fiscals in a row.

This has led to employees being fired, no new hiring being made, and a reduction in appraisal values.

Also read: Tech Mahindra is not giving appraisals to its senior employees. Here’s why

Other than this, IT companies are also under pressure from US to hire local talents from India, which prove to be cheaper than their US counterparts.

This trend to stop hiring more experienced staff would certainly result in recruitment of freshers, or those with under three years of experience.

Also read: Indian IT companies to scrutinise before sending you onsite due to H-1B priority suspension

(Image source Inc)