In a significant move to reward top performers, Wipro has announced a salary raise that will benefit almost 75% of its offshore workforce. Effective September 2024, the salary increase reflects the company’s commitment to maintaining employee satisfaction and recognizing exceptional performance despite challenges in the IT sector.
The average salary hike for offshore employees stands at 8%, while employees stationed at client sites will see a more modest increase of 3%. This development comes in the wake of a global slowdown in the tech industry, where companies are cautiously navigating economic uncertainties and adjusting IT spending. Despite this, Wipro has kept its focus on employee growth and retention, ensuring that top performers are rewarded for their contributions.
The Context: IT Industry Trends
Globally, the technology sector has been facing economic pressures due to reduced client spending on IT infrastructure. The slowdown has been evident across several IT giants, including Wipro’s competitors. For instance, Tata Consultancy Services (TCS) recently announced a salary hike in double digits for their top performers, while other employees received an increase ranging from 4.5% to 7%.
In light of these challenges, Wipro’s move is seen as a strategic attempt to keep its high-performing workforce engaged and motivated. Notably, Wipro reported last year that its best employees received a nearly 6% raise, which has now increased to 8%, demonstrating a consistent effort to improve salary structures for their employees.
Offshore Employees See the Biggest Benefits
The bulk of Wipro’s salary increases are directed at offshore employees. With the majority of Wipro’s workforce located outside client sites, this raise serves as a significant morale boost for employees working remotely or in offshore delivery centers. Offshore employees make up a substantial part of the company’s operations, and this salary increase is expected to positively impact job satisfaction and employee retention.
The new salary structure is designed to reward those who have exceeded expectations in their roles. The 8% hike is particularly notable when considering the fact that the global tech industry has been slow to offer substantial salary hikes amid the current market conditions. Employees at client locations will also benefit, albeit to a lesser extent, with a 3% raise.
Internal Communications
In an internal email sent by Wipro’s Chief Human Resources Officer, Saurabh Govil, the company outlined that the salary hikes would be implemented in employees’ payrolls starting October 2024, including arrears for September. The communication emphasized the company’s appreciation for the hard work and dedication of its employees during a challenging fiscal year.
Leadership Changes
Wipro has also seen significant leadership changes in 2024. Srinivas Pallia took over as CEO in April, bringing a fresh vision to the company. These salary hikes can be seen as part of his broader strategy to retain talent and steer Wipro through a competitive and volatile market.
With Pallia at the helm, the company is expected to adopt new strategies to ensure its growth trajectory, despite the slow growth of just 3.8% in the last fiscal year. As one of the major players in the Indian IT sector, Wipro’s moves are often closely watched by both competitors and employees.
Employee Costs and Future Hiring Plans
Wipro’s salary expenditure for the 2023-24 fiscal year stood at a massive ₹549 billion, accounting for 61% of the company’s annual revenue. With this latest raise, the company is showing its willingness to continue investing in its workforce, even in challenging times.
Looking forward, Wipro is expected to ramp up hiring, particularly from campuses. The company has announced plans to bring in around 10,000 fresh graduates by March 2025. These new recruits will help Wipro bolster its talent pool and maintain its competitive edge in a rapidly changing industry.
What Does This Mean for Wipro’s Employees?
For employees, this salary hike is a positive sign in an otherwise tough job market. Wipro’s decision to increase salaries, especially for offshore employees, underscores the company’s commitment to rewarding top performers. As the IT sector navigates through economic slowdowns, Wipro’s ability to retain and attract talent through competitive salary packages will be key to its long-term success.
