Here's the real reason why employees are quitting Infosys

Gone are the good days where every second person in India wanted to join the IT bandwagon and make a good buck. Now, it seems, things have turned for the worse as many IT professionals are bracing for a pay cut.

Infosys, one of India’s leading software companies, which reported a dismay financial performance, has decided that most of its employees will be getting steep cuts to their variable pay for the March 2012 quarter (Only 70 percent of their variable pay). “The blow will fall harder on the 300 top executives, the so-called title holders who will be asked to take a 70 percent cut in their variable salary” according to an article in the Economic Times. This was also seen in the December quarter where they had to forgo 50 percent of their variable pay.

 Many job portals are also seeing a spurt in resumes from Infosys employees over the last few days and one particular job portal reported an increase of 10 percent.

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While CEO SD Shibulal informed analysts that the salary reduction could result in high levels of attrition, CFO Balakrishnan was of the view that Infosys is a better pay master than its rivals and it is unlikely that employees will desert the company in large numbers.

However, this may just be the tip of the iceberg as as the company has had to deal with far worse issues like losing its prime spot in the IT industry, as it risks being overtaken by aggressive rival Cognizant as India’s second-largest software exporter. Post the results, many brokerages downgraded the stock which had fallen by almost 13 percent during the day it announced its results.

Looks like the company may need a soothsayer to do some of its predictions.