By IANS
Bangalore : The hefty hikes in salaries in the IT, IT-enabled services (ITeS) and business process outsourcing (BPO) sectors will soon be a thing of the past, industry leaders said here.
From next year, the increase will be moderate, said the leaders now here to attend a two-day Nasscom Quality Summit.
The wage increase in these sectors has been 12 to 15 percent in the last two to three years, but “I expect it to taper off from next year,” N. Chndrasekaran, executive vice-president, global sales and operations, Tata Consultancy Services (TCS), told reporters on the sidelines of the summit that ended Friday.
On Thursday, Nasscom chairman Lakshmi Narayanan made similar observations.”It is not just the appreciating rupee that is forcing moderation in wage increases, the availability of human capital in large numbers will also impact the rate of increase,” Narayanan had said.
Nasscom president Kiran Karnik wanted the industry “to focus on creativity and innovation” to improve quality.
Talking about TCS’ expansion plans, Chandrasekaran said the company’s third IT centre in China will be opened by March next year and the head count will go up five-fold to 5,000 by 2010. At present TCS has a workforce of 1,000 in China.