IT firms tighten employee scrutiny amid high costs, thin margins: Report

IT employees who were hired at exorbitant salaries last year will have to justify it through their performance and contributions, according to analysts as reported by the Economic Times (ET). This comes on the back of worsening margins and a tougher economic environment for the IT sector worldwide.

The salary hikes are also expected to halt this year as companies look to optimise costs and utilise employees to the maximum. Senior employees who have been hired at a premium over the past two years will also face greater scrutiny.

Last year, large IT services organisations hired more technology professionals with 5-12 years of experience, referred to as the middle management layer. They make up 70 per cent of the companies’ total workforce.