Information Technology (IT) has been a beneficiary of the pandemic COVID-19 as corporates all over the world realized the importance of moving online to high-tech solutions like cloud service, big data, and analytics.
The software major has followed in the footsteps of its rival TCS. The latter has increased the salary of its employees about a week ago. The updated salary will be effective October 1.
Now, in quarterly results announcement today, Infosys announced good news for its employees.
Across all levels, salary hikes and promotions will be rolled out. These will be effective January 1. In addition, a 100% variable pay and a special incentive for the second quarter of the financial year will be paid.
The company has about 2.4 lakh employees.
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“The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $ 3.15 bn and attrition reducing to single digits", said Pravin Rao, COO.
“Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective Jan 1st."
To add to the good news for the company’s investors, the company reported that the attrition rate for the company had fallen to single-digit on a year-on-year basis. Last year, the same was 18.3% and now is 7.8%.
The company reported glowing financial performance.
“Our second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues", said CEO and MD Salil Parekh.
Finally, to the happiness of investors, the investors approved cash dividend of Rs 12 per equity share. The stock closed in the red today dropping almost 2% than yesterday’s closing price.