Infosys and Rivals Defer Salary Hikes Again in FY25
The decision by Infosys and its peers to defer salary hikes for the fourth time in FY25 reflects a cautious approach in navigating an uncertain economic landscape. With global demand fluctuating, macroeconomic volatility, and subdued discretionary spending, IT service providers are grappling with maintaining profitability while balancing employee morale—a tightrope walk that defines today's corporate strategies. Infosys' Project Maximus, focusing on cost-efficiency and margin improvement, is a testament to the company's strategic foresight. Optimizing subcontractor costs and improving pricing strategies are undoubtedly necessary in times of economic uncertainty. However, it raises a critical question: how sustainable is profitability when employee satisfaction is at stake? Historically, delayed increments or deferred hikes tend to affect employee motivation and retention, especially in an industry as competitive as IT. While Infosys reported a 2.2% sequential increase in n...