If you are a professional in India’s information technology - business process outsourcing (BPO) sector, brace for a lower pay hike this year.
Come April, wage increases will be in the 8 to 10% range on an average, against the 10 to 12% hikes effected last year, with slower growth expected in the wake of a shaky recovery in the US and a lingering economic crisis in Europe, industry officials said on Wednesday.
“We are currently looking at growth of 11 to 14%,” Rajendra Pawar, chairman of the National Association of Software and Service Companies (Nasscom), speaking of IT and BPO export revenues in the fiscal year 2012-13, after the industry association announced a 16.3% growth estimate for the current year.
IT-BPO exports for the current year are expected at $69 billion (R3,38,100 cr), up from $59 billion (R2,89,100in the year to March 2011.
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The industry is estimated to have added 230,000 employees in the current fiscal year, taking the number of direct employees in the IT-BPO sector to 2.8 million.
Pawar said uncertainties linked to political changes in France, China, Russia and the euro zone economies weighed heavily on Nasscom as it toned down expectations but the association expected to revisit the scenario around October and may tweak up its growth outlook at that time.
A rebounding US economy could yield a stronger expectations once presidential elections are over, he said. Currency volatility was also a factor influencing expectations, he added.
The industry expects its medium term outlook to turn favourable, aided by emerging opportunities in cloud computing (services over the Internet), mobility, social media and advanced data analytics.
“With strong fundamentals and need for technology adoption across the globe, we are confident on the continued growth prospects for the sector,” Pawar said.