Indian Tech Firms Bet on Rebound to Cover Wage Rises

Friday Apr 23rd 2010 by Staff

Growing competition for talent leads India's top two software exporters to raise salaries as much as 17 percent.

Wall Street Journal: Competition for top tech talent is causing Indian firms to raise salaries, which negatively affects their profits. Already the two biggest Indian software exporters, Tata Consultancy Services Ltd. and Infosys Technologies Ltd, have said they'll raise wages up to 17 percent. "Compensation increase will impact the margin by 3% [in the current fiscal year]," said Infosys CFO V. Balakrishnan.

Company executives and analysts agree that the dramatic volume growth the Indian outsourcing companies are experiencing should help to offset the impact of the raises.

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