Which IT company gave the highest salary hike to its employees? Compare 5 Firms

Coforge posted the highest year-on-year (YoY) increase in salaries at 27.2%. The chart below shows that L&T Infotech increased the salaries of its employees by 18.3 per cent, followed by Persistent Systems by 14.5%, Mphasis by 9% and Mindtree by 7%. Research by Elara Securities revealed that at the Salary CAGR (Compound Annual Growth Rate) for FY17-22, LTI/Coforge is at the top with Mindtree and Mphasis at the bottom.

Meanwhile, employee pyramid restructuring was evident in FY22 for all such companies, with Mindtree (MTCL) leading. The pyramid restructuring model has a larger number of employees with less experience and fewer employees with more experience, which will lead to lower wage bills and may be implemented as part of firms’ strategy to cut costs.

The report said that in FY 2012, employee growth exceeded average wage growth, which means there has been a rapid renewed growth (pyramid flattening) over the past four years. IT giants paid top compensation to lure skilled workers over the past two years as demand for services such as cloud-computing, digital payments infrastructure, cybersecurity and cryptocurrency transactions increased.

The annual reports of Tier-II IT companies — L&T Infotech, Mindtree, Mphasis (MPHL), Coforge and Elara in a comparative analysis of the Persistent Systems across the IT universe — uncovered some common theme-threads, it said in a note. Feather Indian IT companies,

“IT companies are in a favorable position on engineering capability/R&D service, as such service lines could emerge as a key growth driver over the next few years – Information Services Group (ISG) up 41% in Q2CY22 ER&D increased and most plays saw double-digit year-on-year growth in median employee compensation in FY22. Furthermore, offshoring grew sharply and travel expenses, as a percentage of revenue, increased for most plays, but Still well below pre-Covid levels,” the note said.

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