New Delhi: IT consultant Wipro may not give salary hike to “top performers with higher compensation” in its business line in the following salary revision round, news agency Rueters reported on Thursday.
The move comes at a time when the company is facing a myriad of problems, from low customer spending to stiff competition from larger rivals. “We are selectively rolling out MSI (merit pay increases) based on what our business can afford,” Nagendra Bandaru, managing partner and president of Enterprise Futuring, told employees in an email, according to Reuters.
Wipro will prioritize employees with lower salaries among those eligible for pay hikes, Bandaru pointed out, adding that “top performers with higher compensation may not be covered in this cycle”.
Wipro Enterprise Futuring, one of the Bengaluru-headquartered company’s four global business segments, was created as part of an organizational reshuffle in April, to solve the problem of large-scale technological and digital transformation of businesses.
India’s $245 billion IT industry, which benefited greatly from the pandemic-induced digital services boom, has struggled in recent quarters as customers cut back spending on discretionary projects amid inflationary pressures and global economic uncertainty.
Wage bills are the largest contributor to IT company costs, often accounting for more than 60%. Earlier this week, Wipro asked all its employees globally to work from the office at least three times a week starting this month. Companies have rolled back or revised their “remote work” policies as Covid-19 pandemic restrictions end, including for better communication and collaboration among workers.
Last week, Infosys asked some employees to return to the office 10 days a month, while industry leader TCS asked its employees to return to the office five days a week. A company spokesperson said, Wipro has been encouraging its employees to work from the office three times a week since May and about 55% of the workforce is now working from the office at regular intervals.
