Indian outsourcing giants Infosys, Wipro hike wages

The move by Infosys appears to aimed at boosting morale as it looks to steer itself out of a slump, while Wipro claims its hikes were to reward high-performers.

Two of India's biggest outsourcers have announced pay increases for their workers, amid an increasingly competitive sector.

In a statement released on Thursday, Infosys announced that for the financial year commencing April 1, 2014, the company's average wage would increase by 8 percent on average, for employees based in India.
Indian outsourcing giants Infosys, Wipro hike wages.

Employees in other geographies, who missed out on another salary increase in February, will see their wages increase on average by 3 percent from the start of next month. The salary of the global sales force will see an average rise of 8 percent, effective May 1.

London-based Ovum analyst Tom Reuner told ZDNet the pay rises confirm the low morale at Infosys--which recently recalled co-founder N. R. Narayana Murthy from retirement to steer the company's revival.
"A blanket pay rise is hardly a strategy. [Investors] will hardly be enthusiastic about lower margins and morale alone won't turn the strategic direction around," Reuner said.
"Much is about sales execution and preparing [Infosys] for the future. Internally the pay rise might buy time but externally the headwinds continue."

Separately, rival Wipro also announced its own wage increases. Effective June 1, pay will rise on average between six and eight percent for offshore employees, and between two and three percent for local staff.

"In line with the practice of rewarding high performers, Wipro has awarded double-digit hikes for these employees," the company said.