NEW DELHI: International IT companies agency Accenture is reportedly skipping pay hikes for its workers and decreasing promotions at senior positions in India and Sri Lanka. Accenture mentioned on Thursday it considers quite a lot of elements, together with the macroeconomic surroundings, in making its choices round pay and advantages.
A MoneyControl report, citing an e mail despatched by nation managing director Ajay Vij to workers, mentioned that Accenture “is not going to be paying out hikes to its workers in India and Sri Lanka in 2023 besides the place it’s legally mandated or the place it has dedicated to it in vital ability areas”.
“Given the context of our efficiency, we is not going to be offering any stay-at-level (base pay) will increase this yr besides the place legally mandated or dedicated in a couple of vital ability areas,” he wrote within the e mail.
Vij mentioned the corporate “skilled a macro surroundings that was more difficult than anticipated originally of the FY23 fiscal yr”.
“We’re suspending our promotions to and inside MD, and appointments to SMD, till June 2024 so as to enable ourselves to return to development in order that promotions are reasonably priced”, Vij mentioned within the e mail.
In a press release to IANS, Accenture mentioned its “rewards philosophy is to offer market related pay based mostly on the abilities and areas the place we function”.
“We additionally think about quite a lot of elements, together with the macroeconomic surroundings in making our choices round pay and advantages,” the corporate added.
Accenture has greater than 3 lakh workers in India.
Accenture’s weak 1QFY24 steerage pushes out hopes of a second half restoration for India IT Companies gamers, JM Monetary Institutional Securities mentioned in its report final month.
Apart from, a modest implied development fee by means of 2HFY24 for Accenture dangers India IT Companies gamers’ FY25 income development estimates as effectively. This, we imagine, is an incremental damaging, the report mentioned.
“Given Accenture’s full yr steerage is a primary peek into potential development trajectory for FY25, we see its underwhelming steerage as an incremental damaging for the sector,” mentioned the report.
“We proceed to imagine that the unwinding of extra IT spend might maintain incremental income development muted by means of FY24. If Accenture’s commentary is something to go by, FY25 development expectations could possibly be in danger as effectively”, the report famous.
In the meantime, the hiring index for IT-software/companies has declined (year-on-year) in all 9 months of this yr, reflecting continued softness in demand and uncertainty within the general surroundings, based on Emkay International Monetary Companies.
IT job index is presently down 49 per cent from its peak ranges in July 2022.
