IT services providers in India are set to raise salaries for their employees this year; BPOs too would increase pay, but not as much as their IT peers, according to a study by advisory firm Willis Towers Watson.
In the tech sector, some high-skilled professionals may see their salary go up by more than 20%. However, considering the report, BPOs will increase salary on an average of 6%.
Overall, salaries will increase by 6.4% on average in 2021. Employees in technology firms may see their salary increase by 8%.
“High tech, pharmaceuticals, consumer products, and retail project a median salary increase of around 8%, which is more than the general industry projection,” the report stated.
Of the surveyed companies, 37% have projected a positive business revenue outlook for the next 12 months, up from 18% in Q3 2020.
Rajul Mathur, Consulting Head – Talent & Rewards, at Willis Towers Watson India, says some companies will increase salaries in recognition of employees’ good performance in a virtual work environment.
“Unprecedented change linked to an increasingly virtual work environment has brought to the fore the role of distributed leadership. Organizations should evolve structures to identify, recognize and reward leaders who have demonstrated the ability to lead change and positively impact engagement and productivity.”