Information technology services firm Mahindra Satyam doled out moderate hikes to its employees exercising caution on the back of a fragile economic scenario in the US and Europe, from where it gets over 80% of its revenues.
Satyam’s Indian employees received salary hikes of about 7% while on site employees got a 2% raise, much in line with the rest of the industry. Last month, while announcing the June quarter earnings, company’s chief executive CP Gurnani had sought to temper expectations by sounding cautionary on salary hikes.
Despite a volatile market, most large Indian IT firms gave out pay hikes in the range of 8-10%, while Bangalore-based Infosys had withheld hikes citing low visibility in near term growth – a decision that will be reviewed at the end of September quarter.
Last year, MSat which has an employee base of 33,000 offered 8 to 12% salary hikes from October.
“Most of us in the industry are very cautious and are reviewing the economic situation on a day to day basis,” Hari T, chief people’s officer. “We have decided to offer (pay) hikes to our employees to keep them motivated despite the cut back in IT spends.”
Employee attrition at Satyam was at 13% in the June quarter, compared to 17% in the the previous quarter.
Satyam, part of the Mahindra Group, is set to merge with the group’s IT services firm Tech Mahindra. The combined entity will have a little over $2billion in revenues and an employee base of around 75,000.
Source : ET