IT Job Seekers Beware, Indian Market Predicts Limited Opportunities in 2024

India's information technology (IT) sector is expected to see flat salaries and slow recruiting in 2024, reflecting the impact of global problems on industry operations.

According to an analysis based on renowned hiring business data, IT companies are predicted to offer average salary appraisals ranging from 8.4% to 9% in 2024, consistent with the previous year's levels. However, these increases are likely to be delayed until the conclusion of the fiscal first quarter, which differs from the customary schedule of wage increases in April.

Trends In Salary Increments

Salaries in the industry gradually increased from 8.8% in 2021 to 9.7% in 2022 before dropping off to 8.5-9.1% in 2023. Despite this, many large multinational corporations (MNCs) implemented small raises in December 2023, averaging roughly 7% for most roles.

Selective Increment Rollouts

Last year, companies such as Infosys, Wipro, and HCLTech took selective approaches to compensation increases. For example, Infosys offered raises averaging less than 10%, with some employees obtaining low single-digit raises, while junior or mid-level employees were excluded from salary increases. Similarly, HCLTech and Wipro excluded mid- or senior-level positions from wage changes. Tata Consultancy Services (TCS) provided raises ranging from 6 to 8 percent, with top performers obtaining double-digit increases.

Challenges for IT Companies

In recent quarters, IT organisations have faced problems such as declining revenue growth and reduced headcounts. Last year, some big companies, including TCS and Infosys, avoided campus hiring due to market conditions.

Concentrate on Cost Management

IT companies are working to increase gross margins in the face of slowing demand and macroeconomic uncertainty. Employee expenses account for a large amount of total spending, ranging from 50 to 60 percent, forcing businesses to look for ways to cut costs.

Trends in Global Capability Centres (GCC)

GCCs, which have increased in India, are expected to see average income increases of 10-10.1 percent by 2024. These centres employ a significant amount of India's tech talent, with studies claiming that tech professionals make up approximately 80-85 percent of the workforce.