Information Technology Sector: Pay packages of India’s IT professionals have declined by 30-40 per cent from nearly Rs 1 crore per annum they commanded a year ago, according to an Economic Times report citing industry executives. It said the fall is attributed to global macroeconomic headwinds and IT sector slowdown.
Lower pay packages are becoming the new normal following mass hiring during COVID-19 2021-22. Most of the hiring is currently being done by early-stage startups after their series A funding, the ET report said quoting venture capitalists, recruitment services and executive search executives.
“These are mostly CXOs and senior tech talent who have been laid off in the last few months and have worked with large technology organisations as well as startups,” the report quoted Ratna Gupta, senior partner, ABC Consultants, an executive search and talent advisory firm, as saying.
Tech Layoffs in 2024
According to the latest data from layoffs.fyi, 157 companies have laid off 39,608 employees in the year 2024 so far.
The Silverlining
IT companies are also getting new contracts now. Two months after losing a multi-year contract worth $1.5 billion, IT major Infosys has secured two significant contracts. The most recent deal is a multi-year contract worth $300 million with Singapore’s shipping company Pacific International Lines (PIL) running until 2027.
The Singapore deal came after a seven-year agreement with Irish food retailer Musgrave on January 31 to automate its IT functions using AI and cloud solutions.
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