Finally some good news for India''s struggling information technology sector as the wages, the single biggest cost for the sector shows signs of cooling off. The Wall Street worries and a stronger rupee may have spelt crisis for India''s IT companies. But scratch the surface and good news is fast emerging.
IT professionals being hit by a sluggish job market are now ready to settle for lower wages and this could come as a big relief for IT companies which incur 40 per cent of their cost on employees. It is not just TCS, software major Wipro also sees wages to hover between 12 to 13 per cent while Infosys sees it stabalising between 12-15 per cent.
The wage downturn is certainly great news for the Indian IT companies who have been facing dual pressures from wage inflation on one hand and the appreciating rupee on the other. In the coming period much will depend on the IT budget reviews by the global MNCs by the end of the year. The demand environment will determine the sentiments in the job market and the levels that the wages will settle at.
IT professionals being hit by a sluggish job market are now ready to settle for lower wages and this could come as a big relief for IT companies which incur 40 per cent of their cost on employees. It is not just TCS, software major Wipro also sees wages to hover between 12 to 13 per cent while Infosys sees it stabalising between 12-15 per cent.
The wage downturn is certainly great news for the Indian IT companies who have been facing dual pressures from wage inflation on one hand and the appreciating rupee on the other. In the coming period much will depend on the IT budget reviews by the global MNCs by the end of the year. The demand environment will determine the sentiments in the job market and the levels that the wages will settle at.
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