Accenture, one of the prominent IT giants in India, has sent an email to employees that it will not be providing salary hikes to its employees in India and Sri Lanka in 2023.
However, the new announcement is not applicable for those cases where it is legally mandated or committed to in critical skill areas, according to a report by MoneyControl.
This decision was communicated to employees by Accenture India's managing director, Ajay Vij. Accenture has over 3 lakh employees in India.
According to Accenture's statement at the end of September, the company does not foresee an improvement in the discretionary spending environment or the overall economic conditions. In March 2023, the company announced a significant reduction in its workforce, with 19,000 employees being laid off.
Vij said the company faced a macro environment that was more challenging than anticipated at the beginning of the FY23 fiscal year, and growth was lower than planned.
Accenture, headquartered in Dublin and operating on a September to August financial year schedule, reported mixed performance figures in the last quarter. Their guidance for FY24 was the second-lowest in the past 16 years compared to the beginning-of-year guidance.
In his email, Vij said, “Our rewards philosophy is to provide market relevant pay based on skills and location that is affordable for Accenture. Keeping our payroll aligned with market is essential to the health of our business, including competitive pricing of our services”.
“Given the context of our performance, we will not be providing any stay-at-level (base pay) increases this year except where legally mandated or committed in a few critical skill areas,” he added.
With inputs from agencies