BENGALURU: Tenured employees and high performers would be the focus of the upcoming compensation review cycle at Infosys, the IT giant’s HR head Shaji Mathew said in a recent townhall.
After deferring for nearly two quarters, Infosys is rolling out hikes from November 1. It normally announces the hike in June/July, and it’s effective from April. An email sent to Infosys didn’t elicit a response.
Wipro, its cross-town peer, is rolling out hikes on December 1. Infosys CFO Nilanjan Roy said it has roped in Mckinsey to launch Project Maximus – a margin improvement plan across five pillars and over 20 tracks. About 600 managers are part of this programme, which has seen early benefits in areas like utilisation and optimisation of overheads.
“We nearly had a 50-basis-point improvement from our Project Maximus on cost optimisations. And that gives us comfort for the rest of the year. This is a much longer programme, which will take, not only into this year, into next year as well. We also realise that we have apparent inefficiencies…. our utilisation is still low. So, these will go help us and of course, offset the wage hikes. We have a good programme over the next 18 months to see where we end up. And of course, our aspirations continue to be to improve margins from where we are presently,” Roy said in the earnings call.
After deferring for nearly two quarters, Infosys is rolling out hikes from November 1. It normally announces the hike in June/July, and it’s effective from April. An email sent to Infosys didn’t elicit a response.
Wipro, its cross-town peer, is rolling out hikes on December 1. Infosys CFO Nilanjan Roy said it has roped in Mckinsey to launch Project Maximus – a margin improvement plan across five pillars and over 20 tracks. About 600 managers are part of this programme, which has seen early benefits in areas like utilisation and optimisation of overheads.
“We nearly had a 50-basis-point improvement from our Project Maximus on cost optimisations. And that gives us comfort for the rest of the year. This is a much longer programme, which will take, not only into this year, into next year as well. We also realise that we have apparent inefficiencies…. our utilisation is still low. So, these will go help us and of course, offset the wage hikes. We have a good programme over the next 18 months to see where we end up. And of course, our aspirations continue to be to improve margins from where we are presently,” Roy said in the earnings call.