While many companies are tightening their belts and looking for austerity measures until the economy picks up, outsourcing outfit Infosys is going in the opposite direction.
According to Indian newspaper, the Economic Times, the first concrete step made public after the return of founder Narayana Murthy to an executive role is to jack up all employee’s salaries.
The company will increase pay by an average of eight percent for staff in India and three percent for overseas staff.
The announcement was made to the stock exchanges after markets closed in Mumbai.
Murthy returned as executive chairman on June 1, 11 years after he was last CEO of Infosys. The move is intended to boost flagging morale at the company and to enhance Murthy’s stock of goodwill. It is also sending a message that the Infosys co-founder is back and means business.
The company has had two years of disappointing results and starting to lose market share to rivals such as Tata Consultancy Services and Cognizant Technology Solutions.
The pay increase will be effective July 1 for most staff, while the company’s global sales force will see increases effective May 1, the company said.
