Trending @Infosys; Why Infosys used to give a low salary hike?
Must vote here.
You should understand how a service based company works. They predict the demand in the future and hire today. Then they pitch to their clients with what resources they have available and get projects. Once projects are in, resources move from bench to allocation and this cycle repeats.
In this cycle, Infosys always maintains an active bench. Infosys hires untrained engineers. Folks that don’t know ANYTHING and gives them quality training to take a jibe at testing or development. A lot of these folks lack critical thinking and aren’t really interested in applying themselves. They either have interests that are not their job (ex: I want to be an RJ. I’m doing this just for money) or are in this for material benefits (onsite, job security, etc). So, most of the resources do the bare minimum to not get fired.
Not saying this is wrong, honestly. Because of this, Infosys has to put a LOT of force on middle management to get stuff out of newer folks and clear the bench. They even got programs like ZeroBench and Accelerate to get agency and critical thinking in the bench, but both didn’t work much.
When the company earns money through projects, salaries are only one avenue where they’ve to put money. They’ve to re-invest their earnings, give out dividends, facilitate strategic acquisitions, funnel money into research and growth - all this while maintaining a bench that is unproductive (for the lack of a better word).
All this was STILL manageable. But what went royally downhill was 2021. Tech salaries were ridiculously inflated, so a lot of folks left. To replace them, they had to hire in 2021 market salaries and now they can’t fire these folks because they are good folks - just outliers in Infosys according to pay. To add salt to injury, the US if funding wars and not really funneling money back into their economy. Most of our quality business is from outside and the economies outside aren’t doing very well either.
All these factors add up to no hikes.
You explained other parts of the condition. Nice explanation of the things. But I have a question, why are they not increasing the CTC like - 3.6 lpa?
The folks hired at 3.6LPA are folks that have next-to-no skills. Infosys spends money in training them. Which is a cost to the company.
If you’re a skilled engineer who can already code, you’re hired as a digital programmer at ₹6L, specialist programmer at ₹8L, or Member Technical Staff at ₹12L.
If someone is paying a person who knows nothing about code, paying for college-level training with practical hands-on and then still maintaining a bench - these are costs to company.
Out of these, folks might take the training and scoot. That’s a loss which they have to balance out. And hence the ₹3.6LPA.
