No entry level wage inflation, says Infosys

Infosys, which could end the year with its staff strength increased by a over third, compared with last fiscal, does not expect to pay higher salaries at the entry level.

The company has effected a pay hike of between 13 per cent and 15 per cent (in rupee terms) effective April 1, for some 34,000 staff at the end of the last quarter of the last fiscal.

"Wage inflation, however, will be seen in mid-level hiring", company officials said, at the IT services exporter's first quarter earnings conference here on Tuesday. Mohan Das Pai, chief financial officer said, the wage inflation is likely in hiring project engineers with three to five years experience.

The National Association of Software and Services Companies, expects between 1,25,000 and 1,50,000 people to be hired this fiscal by the IT industry. So far, Indian firms, such as Infosys, have weathered staff leaving for better prospects.

At the end of the June quarter, Infosys' IT services business saw an attrition rate of 9.8 per cent on a last-twelve-months basis, compared with 10.9 per cent at the end of the same quarter last fiscal.

But, The competition for experienced staff is increasing, as multinational competitors seek to ramp up their offshore centres.

While, onsite staff contribute more to revenues, profitability comes from offshoring work. For the June quarter, onsite IT services revenues were $226.58 million and offshore, $209.14 million.