Bangalore-based IT services major Infosys is set to roll out its annual salary hikes in a phased approach, commencing October this year. Most of the company's workforce will see their increments in October, while senior employees are slated to receive their revised salaries in January.
Phased Rollout Amidst Industry Shifts
The announcement was made by Chief Executive Officer Salil Parekh following the company's first-quarter earnings report for the current financial year. Parekh confirmed that the salary revision exercise would proceed in three phases, although specific average hike percentages were not disclosed. This phased rollout aligns with Infosys's annual compensation review cycle and occurs as the global technology services industry navigates a cautious client spending environment, even while heavily investing in artificial intelligence (AI) and digital transformation.
Q1 FY27 Performance and Future Outlook
Infosys reported a 12% rise in consolidated profit for Q1 FY27. Consolidated revenue grew 14% year-on-year to ₹48,211 crore, though it fell short of analysts' expectations. Concurrently, the company has adjusted its FY27 revenue growth guidance, lowering the upper end to 3% from an earlier 3.5%, reflecting ongoing client spending uncertainties. Despite this, large deal bookings, exceeding $30 million, saw an increase to $3.6 billion from $3.2 billion in the prior quarter. AI services notably contributed 8.2% to the company's revenue during the quarter, indicating a growing focus on AI-led projects.
Hiring and Leadership Changes
Alongside the salary hike news, Infosys reiterated its commitment to talent acquisition, planning to recruit 20,000 freshers during the current fiscal year. The company added over 4,000 employees in Q1 FY27, maintaining its investment in talent despite industry-wide growth moderation. Its IT services last-12-month attrition rate stood at 13% as of June 30.
In a significant leadership development, Infosys's Board has appointed Ashiss Kumar Dash as CEO-designate. Dash, who currently leads the company's Energy, Utilities, Resources, Services, Healthcare, and Life Sciences businesses and has over three decades of experience with Infosys, is set to assume the roles of Chief Executive Officer and Managing Director in April 2027, upon the conclusion of Salil Parekh's current term.
AI-First Talent Strategy
Infosys is also intensifying its 'AI-first' talent strategy, offering highly competitive entry-level packages for specialized fresher roles. Candidates selected as Specialist Programmer L3 (Trainee) can receive up to ₹21 lakh per annum, among the highest offered by major Indian IT services firms. Other specialist roles offer packages of ₹16 lakh and ₹11 lakh, while Digital Specialist Engineer (Trainee) roles begin at ₹7 lakh. These positions target graduates skilled in AI, machine learning, cloud computing, data science, cybersecurity, and advanced programming, underscoring Infosys's dedication to building a future-ready, AI-capable workforce.