With the outbreak of the coronavirus pandemic, industry sectors all around the globe massively indulged into salary cuts and lay-offs.
Needless to add, the economy bled.
The only industry which seemed to have experienced maximum reliance, was undoubtedly the information technology (IT) sector, apart from of course, the Healthcare sector.
With ‘Work-from-Home’ being the new normal, companies from all sizes and backgrounds depended heavily on secure and synced IT services.
Despite the reliance, IT majors especially across India either sought salary cuts, lay-offs, or suspended hikes, in the early stages of the Covid-induced pandemic.
However, now with markets reopening and economy reviving, IT businesses too have started to gain momentum, thus finally declaring to roll-out (initially suspended) salary hikes for all their employees, in a phased manner.
Indian IT Majors Report Earnings Show Positive Revival
We had recently informed you of the expected salary revisions announced by major Indian IT firms, most of which converted it into effect from October 1, 2020.
The decision to roll-out wage hikes for all employees is set to benefit about 10 lakh people enrolled in the IT industry.
While the said industry was underperforming in initial months of the outbreak, come October, the growth spurred back to pre-Covid levels, post the earnings report released for the September quarter.
- Infosys marked total contract value worth $3.15 billion in Q2, while
- TCS closed this value at $8.6 billion.
- Tech Mahindra, on the other handed reported new deals worth $421 million in this period.
Tier-II IT Cos Outperform 2019 Quarter Reuslts
It has been reported that not just top IT giants but Tier-II IT companies have also recorded great results, signing new deals in the September quarter.
Hexaware has reported that the net deal wins tallied in Q3 this year is more than that in Q3 2019.
These IT firms believe that as the business begins to improve, it is important to start with salary hikes so that their top performing employees can be retained.