Cognizant Expertise Options Corp will probably be giving annual wage hikes to workers from August this yr, marking the second time it has delayed wage will increase by a minimum of 5 months.
Collectible figurines with computer systems and smartphones are seen in entrance of Cognizant emblem on this illustration taken, February 19, 2024. (Dado Ruvic/Reuters)
In the meantime, bonuses to eligible workers will probably be rolled out in March, in response to a Mint report.
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The Teaneck, New Jersey-based firm often offers hikes and bonuses round March, however after its new CEO Ravi Kumar took workplace, bonuses are given in March whereas hikes are given in August.
The corporate gave hikes within the vary of 1-5% final yr. Nevertheless, the early announcement this yr is to presumably management attrition, in response to the report.
Attrition, or folks leaving the corporate, rose to fifteen.9% on the finish of 2024 from 13.8% a yr again. This was within the tech providers arm.
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This attrition determine is larger than rivals akin to Tata Consultancy Providers Ltd, Infosys Ltd, and HCL Applied sciences Ltd, which reported attrition of 13%, 13.7%, and 13.2%, respectively, the report learn.
Nevertheless, TCS and Infosys consists of IT providers attrition on this determine whereas HCLTech excludes the digital course of automation wing.
One purpose for Cognizant’s larger attrition price is Kumar’s coverage of going after redundancies. Extra particularly, Cognizant introduced it will sack 3,500 workers and shut 45% of its Indian workplace areas in 2023, simply 4 months after he joined.
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In the meantime, TCS was the one giant IT firm to roll out increments on time, awarding workers hikes of 4.5-7% within the April-June 2024 interval, in response to the report.
That is all as a result of “the Indian IT trade is holding its breath and taking a defensive place,” the report quoted Peter Bendor-Samuel, founder of Everest Group, a Dallas-based IT research firm as saying.
“Going into the year, it looked like the market had hit bottom, and we were set for a recovery. However, the uncertainty created by the new US administration is spooking the market. Clients are holding off on planned projects, and many in the industry fear we are sliding back into the delay and cancel environment we have been experiencing for the last two years,” he added.