Infosys will begin salary hikes in October for most staff, with senior leadership receiving theirs in January. The IT major also plans to hire 20,000 fresh graduates this year to support growth, as AI services continue to gain revenue traction.
Detailed Coverage
Infosys has announced that it will roll out salary increments for its employees starting in October. The wage revision process is scheduled to take place in three phases, concluding in January. According to the company, the majority of the workforce will receive their hikes in the first phase this October, while the salary adjustments for senior management are slated for January. This move comes as the company continues to manage its human resource strategy amid shifting demand in the global IT sector.
Hiring Goals and Workforce Trends
The company has reaffirmed its focus on campus recruitment with a target to bring on board 20,000 fresh graduates during the current financial year. Progress is already underway, with the firm successfully hiring more than 4,000 freshers during the first quarter ending June 30. Despite these hiring efforts, the company's overall workforce size saw a minor reduction, with the total headcount standing at 3,28,062 as of June 30, compared to 3,28,594 at the end of March.
Additionally, the company reported a slight uptick in its attrition rate—the percentage of employees leaving the firm—which moved to 13% for the trailing twelve months, up from 12.6% in the previous quarter. Monitoring these workforce numbers is important for investors to gauge how the company manages operational efficiency and talent retention in a competitive industry.
AI Growth and Large Deal Bookings
Artificial Intelligence is playing an increasingly central role in the company's revenue mix. During the recent quarter, AI-related services contributed 8.2% to the total revenue, marking a steady increase from the 5.5% contribution reported in the December quarter. This shift indicates the company's efforts to align its service offerings with the growing global demand for AI-driven solutions.
Furthermore, large deal bookings showed positive momentum, reaching $3.6 billion for the quarter, compared to $3.2 billion in the preceding period. These bookings, which include deals valued at over $30 million, serve as an indicator of the company’s ability to secure significant contracts despite broader macroeconomic uncertainties. Looking ahead, investors may monitor how effectively the company integrates these new hires into its workforce and whether the rising contribution of AI services can sustain or improve overall profit margins against potential wage-related cost pressures.