CHENNAI: Employees in the Information Technology (IT) sector have something to cheer for this year with the industry expected to see an increase in wage hike of 8-11 per cent this fiscal. The industry net hiring is also expected to increase by six per cent.
The apex industry body for the sector - the National Association of Software and Services Companies - released its annual HR survey 2014 at the NASSCOM HR Summit here on Wednesday, which points out that both wage increase and hiring expected to see moderate increase as demand for employees increases and the economy continues to recover.
According to the report, wage hike is expected to be higher compared to the last fiscal with 9-11 per cent in FY14-15 as against 8-10 per cent last year. Middle-level executives are likely to get the biggest hikes. The increase in net hiring too is likely to add a further 1.7-1.8 lakh employees to the sector. Major portion of the hiring is expected to be driven by small and medium enterprises with the headcount in the SME group expected to grow 7-8 per cent. Last year, the net hiring grew at less than six per cent for the industry.
R Chandrasekhar, president, NASSCOM, pointed out that with the start-ups and smaller firms blooming in the country, it is not surprising that smaller firms are overtaking hiring by the traditional giants in the sector.
Employers though may have to look out, as the report also states that attrition rates are likely to go up. However, fresh hiring is expected to see a drop. The survey said that nearly 50 per cent of the firms are unhappy with the quality of campus recruits.
“Benched personnel too are likely to see a decrease, the survey states, with it coming down by 1-2 per cent from the 15-20 per cent that was last year seen in some companies,” said BVR Mohan Reddy, vice-chairman, NASSCOM.