How Infosys is cutting cost to tackle drop in margins
Infosys revenue growth was impressive in the first quarter, but the successive quarterly margin drops are becoming a concern for the company. It fell to 20.5 per cent in the last quarter, below its targeted 21-23 per cent for the year, and much below the 24-25 per cent that it was at just a few years ago.
The company is taking a number of measures to contain the fall, many of them costcutting ones. Salary hikes to senior employees (job level 7 — or delivery managers — and above) have been postponed. Title holders — associate VPs, SVPs and EVPs, of which there are 971 — have not been given their annual bonus of $25,000-35,000.
Travel is being discouraged, unless it is essential. “Earlier, we just needed to inform the manager that we would be traveling. Now it requires a sanction at a very senior level. Video conferencing is being encouraged,” a senior executive said.