 Salary Increases
Salary increases will continue to witness a downward spiral and should reach single digits in the next few years. But the talent war will continue as companies consolidate and weaker players liberate talent to stronger and better employers.
Evolution of Salary Structures
Reward structures in India are evolving. Theeventual outcome could be similar or identical to what is seen in the US. The two forces influencing these are: The government’s desire to increase transparency and convenience in managing taxpayers and the organisation’s desire to reduce administrative challenges in managing extremely large numbers of employees.
 Attrition and Retention
India has the highest attrition among all Asian economies. Managing Attrition and Retention is now the central theme behind most new HR programs and interventions in the IT & ITES industries. HR leaders complain that these two aspects of their business take the maximum amount of time and cause the most concern. General sentiment is that among solutions, Employer Branding and Total Rewards approach are the best short and long-term options before most
organisations.
 Campus Salaries
Wage pressures continue to remain stable at the entry level for graduates. However, it is interesting to note that the premium for leading institutes is phenomenal.
Post Graduates in Business and Economics get higher salaries every year.
“Salary Increases will continue to witness a downward spiral and should reach single digits in the next few years. But the talent war will continue as companies consolidate and weaker players liberate talent to stronger and better employers.”
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The trend towards strengthening of the rupee vis-à-vis the dollar was observed since 2005 and most firms hedged against the risk by signing forward contracts to mitigate the impact of the rising rupee. There is a very gradual shift in the structure of the contracts and many are planning to move back to ‘Time and Material’ from ‘Fixed Bid’ engagements. 