A better outlook for IT companies and competition for better talent is pushing up wages, said Joseph Anantharaju, EVC and CEO-product engineering services and Venkatraman Narayanan, MD and CFO of Happiest Minds Technologies on Tuesday.
Speaking in an interview with CNBC-TV18, Anantharaju and Narayanan discussed at length about the rising demand for digital talent leading to wage inflation.
“We will be giving double-digit hikes to employees this year and we are going to cover the entire company, right from the junior level up to the executives. This is an indication of confidence in the business as well as the fact that we recognise that demand for talent is there,” said Anantharaju.
TCS reverts to the usual wage hike cycle for FY22, employees to get wage hikes effective April 1st. This comes six months after the previous hike in October 2020.
Narayanan said, “Margins, effectively we have to make up for the cost increase by expansion in revenues that we are all looking at. As I have been saying for the last 6 months, we should start looking at some increase in selling, general and administrative expense (SG&A) cost because the pandemic year has given us a huge amount of credit on many of those cost elements which are likely to come back.”
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