Salary hikes of major IT companies take a back seat amid weak demand

Accenture for instance will not be providing salary hikes to its employees in India and Sri Lanka this year, except in critical skill areas and where it is legally mandated

Salary hikes at information technology (IT) companies have taken a back seat due to a slowdown in demand triggered by delayed decision-making by clients and reductions in discretionary spending. Some companies have deferred payments, while others have stalled them altogether.

Human resources (HR) experts said salary hikes would be restrained this year due to a muted industry outlook and demand-supply issues.

“Some companies might even choose not to give any hikes, while others may offer very minimal increments. This adjustment is a direct response to the prevailing supply and demand dynamics. In 2021-22, companies responded to high talent demand by offering substantially