- There is a fierce war of talent in the IT industry because hiring for the right skill remains a major challenge for companies.
- A report by Deloitte highlights that companies offer significant salary increases and raises to employees who possess the in-demand skill set.
- The average salary increase given to employees in 2020 was 8.8%, however, this percentage is expected to rise to 9-11% in 2022, according to the report.
According to the India Technology Services Compensation Standard report by Deloitte and NASSCOM, about 91% of information technology (IT) organizations have resumed hiring at the same pace they used to hiring in pre-COVID times.
But there is a fierce war of talent in the IT industry because hiring for the right skill remains a major challenge for companies. Companies are no longer looking only for functional experts. The report says the need for the hour is a workforce that understands and adapts technology in all shapes and forms across business lines.
The report also highlights that companies offer significant salary increases and raises to employees who possess the required skill set. As the year progresses, companies are proposing to increase their increases for the next year.
The average salary increase given to employees in 2020 was 8.8%, however, this percentage is expected to rise to 9-11% in 2022, according to the report. A double-digit increase is expected in many sub-sectors of the sector.
For example, if the increment given to the average performer is X, the degree of differentiation of the increment given to the highest performers can be as high as 1.7X or 1.8X.
The percentage of companies that have already offered or plan to award performance bonuses increased from 72% to 94% in the last two quarters (April to September) of this year.
Here are some of the outstanding skills that are expected to lead to a pay increase in the coming year:
|digital skill||Percentage of increase (%)|
|Robotic Process Automation (RPA)||16-18|
|Search Engine Optimization / Marketing||14-16|
According to the report, blockchain has the most potential skill set, which could attract an increase of 20-22%, followed by artificial intelligence and cybersecurity at 19-22% and 18-20%, respectively.
Search Engine Optimization/Marketing (SEO/SEM), Mobile Platforms and Cloud Computing – These skills may offer the lowest percentage increase in the coming years ranging from 14-16%, 12-15% respectively.
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