Offshore salaries to rise 15%, onsite 6%

Infosys will be effecting salary hikes in FY08 for both its offshore and onsite employees which will impact its topline by about 3%. Offshore employee salaries will be hiked by 12-15% while onsite employees will get a hike of 3%. However, for certain segments of employees engaged in package implementation and consulting, the hike will be around 5-6%.

Mr TV Mohandas Pai, director (HR), Infosys, said: “We normally have a overseas hike in the range of 3% but now it has touched 5-6%, and this will be a one-time issue.”The consulting and package implementation segment constitutes around 23% of its revenues.

Infosys CFO V Balakrishnan said that the impact of the hike in salary would be around 300 basis points, but it would be offset by higher utilisation rates and better efficiencies in selling, general and administration expenses (SG&A).

For the freshers category, Infosys is likely to raise the salaries once again by 11%. Currently it pays Rs 2.3 lakh for freshers and it expects the hike to be in the same range. However, it does not expect this rise to have any impact on its competitiveness.