Indian IT firm, Infosys has rolled out a new ‘power programme’ for campus placements, offering pay packages of up to Rs 9 lakh per annum, significantly higher than its standard entry-level salary of Rs 3-3.5 lakh, according to a recent report by the Economic Times.
This initiative, which targets candidates with strong coding, software development, and programming skills, reflects the IT major’s shift towards differential hiring amid a growing demand for specialised talent.
The report added that the salary bands under this new programme range between Rs 4-6.5 lakh and Rs 9 lakh, depending on the candidate’s expertise. The programme mirrors a similar initiative by Tata Consultancy Services (TCS) called ‘Prime,’ which offers salaries between Rs 9-11 lakh per annum for freshers in software development roles.
TCS’s hiring strategy also includes roles under its ‘Ninja’ and ‘Digital’ categories, offering packages of Rs 3.6 lakh and Rs 7.5 lakh per annum, respectively.
As the IT services sector navigates a subdued demand environment, Infosys and its peers are increasingly focusing on hiring talent skilled in cloud computing, artificial intelligence, and cybersecurity to drive digital transformation projects. Infosys CFO Jayesh Sanghrajka highlighted the company’s agile hiring approach, which now includes both campus and off-campus recruitment.
This year has been particularly tough for IT employees with companies declining to hire freshers. Well, those working at the organisation are also not having the best time of their lives.
The entire IT sector witnessed a sharp decline in hike growth in 2023, dropping to 9.1% from 10.3% in 2022. Excluding products, the IT/ITeS sector saw the lowest average salary hike at just 8.4%.
In 2021, the average salary hike was 8.8%, which increased to 9.7% in 2022. Last year, the sector saw average increments between 8.5% and 9.1%.
IT companies are offering single-digit salary increments to employees who lack AI-related skills. Further, there is an abundance of entry-level talent who are now equipping themselves with the latest tech and tools. Additionally, rising business costs, coupled with layoffs are making this trend continue this year too.
Despite the overall slowdown in the technology services sector, which saw the top five Indian IT companies reduce their headcount by over 70,000 in fiscal 2024, Infosys plans to hire 15,000-20,000 graduates in FY25.
TCS is set to recruit around 40,000 freshers, consistent with last year’s numbers, while HCLTech and Wipro are targeting 10,000 and up to 12,000 fresh hires, respectively.
Infosys, which reported a net headcount reduction of nearly 2,000 employees in the April to June quarter, is set to resume campus placements this fiscal year, signaling a renewed focus on fresh talent acquisition. The company’s total employee base stood at 315,332 as of June 2024. Meanwhile, TCS, after three consecutive quarters of net headcount reduction, saw an addition of 5,452 employees in the June quarter.
