Indian IT services firms raise Indian wages

India-headquartered IT services giants Infosys and Wipro have announced pay rises across their workforces in India in a move that reflects the coming to an end of the time and material IT outsourcing model and the competition for skills.

The suppliers, like other offshore IT suppliers, expanded through offering low cost labour to US and UK corporates, but this model that offers linear growth is not being planned as the way forward.

Infosys said this week that it would be increasing salaries by an average of 8% in India, compared with an average of 3% in other regions.

Despite claims that the pay rises are to address low morale, a source said Infosys, like other Indian services firms, have recognised that “the old time and materials model that meant more people and more business is going away.”

SOURCE: computerweekly.com

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