Infosys is facing a strange dilemma these days. Newspaper reports keep on spreading rumors that they are mulling a wage hike whereas the company keep on denying this, that there is no such thing on the cards. The employees are vary and so are all the stakeholders. The company recently overhauled its client engagement strategy by dedicating senior executives to watch over each of its top customers. The top 50 clients, who together account for half of Infosys’ $7-billion ( Rs 38,000 crore) revenue, will be taken care of a dedicated senior resources, permanently based at the same location as the customer. Having done that, now comes the next challenge of retaining quality talent. Infosys is losing its highly talented staff to competitions like TCS, Cognizant and so on. The way out seems to be two things. One, give a clear direction to where the company is headed, second increase the salaries. This will instill the confidence of its employee and dispel the negative notion that the company has lost its golden touch. Easier said than done.

Among the employees, the bone of contention is fixed vs variable component of their salaries. the company may keep the fixed as unchanged and increase the variables whereas the employees would prefer an increase of 2% in the fixed rather see the variables get increased by 10%.

The general notion is such news are floated just to create a buzz to create an illusion that the company is about to announce to the salary hike in its bid to stop the flight of talent personal. though in reality the actual hike will happen in the appraisal cycle only.

Infosys woes don’t not end over here. Constant negative news keep on hampering its brand image. Global equity research firm CLSA said its stock could fall 40% from the current levels in 12 months.The timing of the note is crucial as Infosys will announce its second quarter results in next few days.
On the contrary infosys bpo is isn’t having such problems. It has increased the salaries and is actively scouting for buyouts to double its annual revenues to $1 billion.

The big questions among many infosysion is, to stay there or to quit? Some would say it is better to jump off a sinking ship rather than stay stuck and get drowned. But before anyone starts thinking on that level, they need to remember that the world has witness turnarounds. It just take few smart decisions, a belief in your own growth story and willingness to adapt to changes and a new renewed success story can be crafted. infosys is still on of the one of the best IT companies, its fundamentals are strong, all that they need is senior management to become more transparent and take on the current crisis by the face of it. Accept that there is a problem,talk to the employees frequently and clearly, seek suggestions, assure them that solutions are being worked out and share the roadmap honestly. Don’t just please the shareholders, employees too hold some importance. An honest communication can help infy retain its talented resources rather than brushing off the current issues in a typical bureaucratic manner.