BENGALURU: Top IT service providers in India are freezing or reducing staff bonuses out of concern that shrinking budgets at clients in the US and Europe who are preparing for a recession will severely hurt their own profitability after a pandemic-driven boom.
According to respective internal letters sent by management to staff at the two businesses, Infosys, India’s second-largest IT company, and smaller rival Wipro, recently informed its employees that they had decreased the variable pay element of employee compensations.
Some Indian businesses include variable pay as a component of an employee’s total compensation package and tie it to both the employee’s and the business’s success.
