Insys has pushed back its annual salary increases to the fourth quarter of fiscal year 2025.

Infosys, India’s second-largest IT services firm, has delayed annual wage hikes to the fourth quarter of the current financial year. This decision reflects the uncertainty in the global demand environment, particularly for discretionary IT services. Rivals HCLTech, LTIMindtree, and L&T Tech Services have also skipped salary increments to manage costs and sustain profitability. The company had announced plans to implement wage hikes in Q4 in a phased manner, with some part effective in January and the balance in April. Despite the delay, margins improved by 10 basis points in the second quarter due to lower onsite costs, improved utilisation rates, and better operational efficiencies. Analysts believe that the withholding of hikes is unlikely to lead to resignations due to a stagnant job market. Certain delivery teams within large enterprises may still offer salary hikes to top performers, as each unit has a budget to reward exceptional talent.