Recently IT giant Infosys announced salary hikes in the range of 5-8% disappointing many of its 323000 employees. The increments was significantly lower by 5-10% than last year’s hikes. Additionally performance bonuses have also been reduced. After them now another IT Services firm Cognizant delayed salary hikes. CEO Ravi Kumar S recently addressed employees in a town hall meeting to provide updates on the companys compensation plans including bonuses and delayed salary hikes. The meeting was conducted to clarify the company’s stance and address employee concerns. Cognizant Salary Hikes According to a report by Mint during the townhall Kumar acknowledged employee frustration over the delayed salary hikes initially planned for April but now rescheduled for August. He assured employees that the hikes will be honored and explained that the delay is part of a strategic approach to align with the company’s financial goals and market conditions. We understand the importance of timely compensation and are working diligently to ensure that our employees are fairly rewarded for their hard work and dedication Kumar said. Bonuses Scheduled for March Kumar also outlined plans for bonuses confirming that eligible employees will receive their bonuses as promised in March. According to a Mint internal memo seen by them employees can expect eLetters for their bonuses by March 10. He reiterated Cognizant’s dedication to rewarding performance and maintaining attractive compensation packages. Strategic Reasons For Delay The delays in salary hikes come amid uncertain macroeconomic conditions impacting the IT industry. Cognizant is also focusing on increasing operating margins and optimizing office space. The company is balancing these challenges while aiming to retain talent and remain competitive. The early announcement of the salary hikes has sparked mixed reactions. Some employees view it as a morale-boosting move to reduce attrition while experts suggest it reflects Ravi Kumar’s commitment to transparency and ensuring employees feel valued despite market uncertainties. Kumar also discussed Cognizant’s broader strategy emphasizing efficient operations and investments in areas such as artificial intelligence and digital transformation to drive growth and innovation. He acknowledged the challenging economic environment but reaffirmed the company’s focus on long-term success.