December 18, 2023
2 mins read

Recession fears hit IT sector

The scenario is more or less the same with global players headquartered in the US and Europe that have a major presence in Bengaluru….reports Asian Lite News

Amid gloom against the backdrop of fears of a global recession, major IT players in Bengaluru have enforced steep cuts in yearly hikes and promotions for staffers.

Bengaluru-based tech giant Infosys has given its staffers less than a 10 per cent hike this year.

The scenario is more or less the same with global players headquartered in the US and Europe that have a major presence in Bengaluru.

The phase, which began a year ago, was believed to get over in six months, but it has continued to force IT companies to take drastic measures in terms of salary hikes.

New entrants are not being considered for hikes this year.

“IT companies used to give 20 per cent yearly hikes earlier, and for those who were promoted, the hike would have been 50 per cent. This year, promotions are put on hold, and for performers who got promoted, they have been given 10 to 20 per cent hikes,” said an IT professional working for a US-headquartered company.

The scenario is reminiscent of the dreaded phase between 2007 and 2009, during which the IT sector was severely hit.

With automation and Artificial Intelligence (AI) eating into jobs, IT professionals are concerned, as the senior HR Manager of a reputed tech company reveals.

“No one knows when the phase will end, and halcyon days will come back. During the Corona phase, the demand for skilled employees in the IT sector had reached its peak. Performers were lured with advance bonuses, costly gifts like BMW bikes, and others. All that seems to be a dream now,” he says.

However, experienced workers maintain that the companies that could survive the worst of recession phases earlier will come out of it this time as well and this is a natural phase of the IT industry.

In its communication to staffers, Infosys thanked employees for their unparalleled support and efforts to overcome the current challenges and ensure success in all aspects, according to sources.

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