EXL says 8-9% salary hike likely for India-based staff

Good times seem to be rolling for BPO employees. Offshore BPO firm ExlService Holdings is looking at an average salary hike of 8-9 per cent per cent for its India-based employees this year – a notch higher than the eight per cent hike it typically hands-out.

For non-India employees, the salary increments will range from 2-3 per cent in case of its US staff to 7-8 per cent for the Philippines.

Inflation-linked

“We are in the process of finalising the salary increments for 2011. The hike will probably be about 8-9 per cent, which is slightly more than the usual average. Since the inflation in India is higher this year, there is a bit of catching up to do,” Mr Rohit Kapoor, President and CEO of the company said.

As on December 31, 2010, EXL's global headcount stood at 12,700 employees. The wage hikes will be handed out next month.

While deciding on the wage hike, the company has also kept in mind the increments being doled out in other sectors, particularly those it competes with, for talent. “The rest of the industries like retail, banking and financial services, and hospitality are also scaling up their salary and compensation levels so we have to be competitive with other industry groups,” he said.

Non-India staff

Even as staff in India will go home with larger pay packets, employees in the US and the Philippines will see salaries only increasing at last year's levels. Employees in Czech Republic and Romania can expect wage increase of 2-5 per cent.

The total impact of these hikes on costs would be to the tune of 3-3.5 per cent, but the company does not sound too worried. It does not foresee an impact on the margins. “We are able to offset this (the wage hike) from the price increases that we get from our customers on an annual basis, as well as productivity and efficiency improvement,” Mr Kapoor said.

Asked if the quantum of salary hike will put it on a firm footing with its rivals, he contended that salary was only one of the elements that employees look at.

“There are other elements like training and development, career progression, facilities and infrastructure, the kind of perks and benefit being given out. We look at it from the view of a total package for our employees,” he said.

Earlier this month, global HR consultancy group Aon Hewitt had forecast that India was likely to see the highest pay hike in the Asia-Pacific region of nearly 13 per cent this year, followed by China (9 per cent) and the Philippines (7 per cent). For Information Technology and outsourcing (ITeS) sectors, it projected a salary increase of 12 per cent and 11.9 per cent, respectively.

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