I-T companies tightening salary budgets, leveraging variable pay for niche skills

MUMBAI | NEW DELHI: Global IT services company InfosysNSE 0.13 % recently delayed salary increases for a section of its senior and middle management employees. Other companies in the sector are tightening salary budgets and increasingly leveraging variable pay for high performers and niche skills.

This comes as Indian IT service companies grapple with margin pressure and rising employee costs amid a growing need for high-cost digital skills and pressure to hire local talent in the US and other countries.

Companies are cascading variable pay to more levels in middle management and building in new ways of calculating them such as project-based assessment, experts said.