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No pay hike for Infosys staff

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CIOL Bureau
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BANGALORE, INDIA: Despite a 27.4 per cent rise in YoY net profit and announcement of dividend, Infosys is treading with caution. It has announced that there would be no pay hike this April for its employees, unlike previous years.

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Also, the company will have a net addition of only 6,000 more staff worldwide, which comprises 1,200 onsite including in the U.S. and Europe, this year. This pales in comparison with the 19,000 net additions last year.

Infosys CEO and co-founder S.D. Shibulal said: "It has been a difficult quarter."

The announcement on no wage hike, according to company representives, was intimated to the employees Friday morning.

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Also read: Will US Election affect Infosys, TCS?

There have been speculations that India's leading software exporters like Infosys and TCS might face a challenging year ahead due to growing competition, an uncertain global economy and rising U.S. rhetoric against shipping of jobs to low-cost locations ahead of the November presidential election.

"They need to have visibility, which is somewhat marred by the pretty volatile situation in the United States and Europe," Dhiraj Sachdev, a senior fund manager at HSBC Asset Management, said, referring to the Indian software firms.

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"Business confidence is also fluctuating," he said. "In such a scenario, customers are also very hesitant on how to go about their (technology spending) budgets."

The global IT company reported a 22.1 per cent increase in revenues over last year, meeting forecast, after customers ramped up orders to cut operational costs.

Bangalore-based Infosys said on Friday consolidated net profit for the fiscal fourth quarter ended March 31 rose to Rs. 23.16 billion from Rs. 18.18 billion a year earlier.

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