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Wednesday, Apr 28, 2004

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Infosys to pay freshers better

Vishwanath Kulkarni

Bangalore , April 27

CLOSE on the heels of achieving the billion-dollar-mark, software major Infosys Technologies has effected a marginal salary hike for its campus hires. The company has revised upwards the entry-level salary by Rs 1,000 per month to Rs 15,000 per month, an Infosys spokesperson said.

It may be recalled that following the technology slowdown, several IT companies had cut down on entry-level salaries even as Tier I firms had maintained a flat structure for couple of years.

For the current fiscal, Infosys plans to hire about 10,000 people. It is expected that bulk of the new hires would be from the campuses.

Infosys added a total of 9,758 employees on net-basis for the year-ended March 31, 2004.

Infosys, in a post-earnings call, had indicated that in fiscal 2005, it has seen an increase in salaries paid in India by 17 per cent. Indian salaries made up 13 per cent of revenues for the last fiscal.

While the wages stayed flat at the entry-level last year, the company had witnessed wage inflation at the middle level. Wages at the middle level were up by 15-20 per cent mainly due to the shortage of project manager type of skill-sets in the industry.

For Infosys, the wage cost for the current year is likely to stay flat since the marginal salary hike is effected for the fresh recruits. The lateral hires that would come at a higher salary would be the band to pressure wage costs. However, the numbers would be small compared to the overall hiring, the net effect will not substantially eat into the revenues.

The Indian IT services industry is witnessing a dearth in supply of project manager type of skill sets.

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