Global information technology (IT) firm Accenture has rolled out salary hikes ranging from 3 percent to 13 percent for employees at Level 8 (Associate Manager) and above, the first such increment in two-and-a-half years. This move signals cautious optimism amid an “elevated level of uncertainty in the global economic and geopolitical environment”.
Although the highest salary hike bracket is in double digits, employees are not enthused, as it comes after a long wait. The company described the current demand environment as an “elevated level of uncertainty in the global economic and geopolitical environment.”
While declaring the Q2FY25 results on March 20, Accenture had raised the lower end of its annual revenue forecast, which stemmed from growing demand to integrate AI-powered tools into clients’ operations.
Meanwhile, the hikes are part of the company’s June performance cycle and come alongside promotions for nearly 50,000 employees globally, including approximately 15,000 in India, according to an internal mail shared by Ajay Vij, Senior Country Managing Director, Accenture in India, and seen by Moneycontrol.
For FY25, more than 43,000 employees in India are expected to be promoted.
“This cycle, we will have stay-at-level (base pay) increases, including many of those not covered in the December cycle and others in key growth areas,” Vij further wrote in the mail. Adding that the majority of Accenture’s workforce in India will have received a base pay increase by the end of FY25, either through promotions or stay-at-level adjustments.
The Dublin-headquartered firm employs about 8 lakh people.
Last month, Indian IT companies Tata Consultancy Services and Wipro delayed wage hikes. While TCS said it is deferring wage hikes this year and will roll them out “based on business environment,” Wipro said wage hikes will be decided closer to the date.
Moneycontrol has reached out to Accenture for comments, the story will be updated as and when the company responds.
The hikes follow a period of lull in increments as the company was wading through a volatile global business environment. While Accenture has seen a rebound in revenue growth through FY24, with the last quarter growth described as “broad-based across markets, industries, and the types of work clients seek”, operating margins have come under pressure compared to the same period last year, Vij added.
The world’s largest IT company said it remains focused on disciplined execution and helping clients lead reinvention, especially as it prepares to return to strong growth in FY25.
June promotions will be communicated between May 26-29 to employees by managers, with details being shared on May 29. However, bonus and variable pay will continue to follow the December cycle, Vij added.