Indian IT Cos to pay less to employees

As per the assocham analysis, the average hike in wage cost of IT companies fell to about 22 per cent during Oct-Dec 2007, as against a whopping q-on-q rise of 45 per cent during third quarter of the financial year 2006-07.

Thinning margins due to appreciating rupee is putting pressure on the software companies to put a check on its employees’ pay packages. At the same time, high emphasis would be now placed on productivity efficiencies and cost controls. The trend has already begun with TCS cutting the variable pay of its employees.