Coronavirus Impact: Infosys suspends promotions and salary hikes

The country’s second-largest IT services player Infosys on Monday suspended promotions and salary increments in view of the ongoing coronavirus pandemic that has claimed over 500 lives in the country so far.

The firm said it would honour all new job offers. Infosys, which reported a 6.3 per cent rise in consolidated net profit to Rs 4,335 crore for March 2020 quarter, said it is unable to provide revenue outlook for FY21 due to business uncertainty amid the outbreak.

Infosys CEO and MD Salil Parekh said Infosys team has achieved 93 per cent remote working on Monday and ensuring consistent service delivery for clients in this rapidly changing environment. “While the immediate short-term will be challenging, looking ahead, we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger,” he added.

Infosys COO Pravin Rao said the impact caused by COVID-19 since last few weeks of March has led to “significant displacement” in the operating model while severely testing business continuity plans of companies.

TCS on the other hand has decided to freeze salary hikes. It said that it will honour each of its commitments on new hires by taking all the 40,000 people who have been given offers on board, unlike some other blue-chip companies that are reportedly having a relook.