Indian IT Firms Grapple with Rising Wage Bills Amid Growing Demand for Skilled Professionals

Indian IT companies are experiencing increased wage expenses due to the escalating demand for skilled professionals in areas like artificial intelligence, machine learning, and cloud computing. In the fiscal year 2024, leading firms such as Tata Consultancy Services (TCS), Infosys, and Wipro reported an average wage cost increase of over 5.5%, despite a modest revenue growth of 3.6%. This surge is attributed to lateral hiring, with companies offering salary hikes of 20–30% to attract talent in high-demand sectors. Additionally, annual salary increments, even in the lower single digits, have contributed to the rising wage bills. Analysts anticipate that wage bill normalization may occur by the end of the current fiscal year. 

Source: People Manager