Infosys defers joining dates for new hires to cut costs

Infosys, India's second largest IT services outsourcer has deferred the joining dates for engineers as part of a cost cutting exercise. The company, however, maintained that it would honour all campus offers made to prospective employees.

“In a tough business environment, we are taking certain cost optimization measures. These are necessary for us continue making strategic investments and afford the compensation increase that we are in the process of rolling out,” Infosys said in a statement.

Infosys, which was the only frontline IT firm to defer a wage hike in April, had announced a salary hike of 6 per cent for offshore employees and 2-3 per cent for onsite employees, effective October.

System engineers, slated to join Infosys in the current batch, will now have to wait for around three months, the company said. To compensate for the delay in joining, Infosys will roll out an exclusive online training program for the new hires.

"The completion of this training will not only give these recruits a head start in their career with Infosys, but also reduce their planned six month training program in Mysore by up to two months," Infosys said.

Shares in Infosys gained 1.1 per cent to Rs 2,389.15 on the BSE. The stock performed in line with the broader BSE IT index, which closed 1.15 per cent higher today.