Over more than last one year World has been experiencing economic downturn, cut in business travel, fewer recruitments and less or zero hike in Salary. Many small firms were forced to shut down their businesses and many giants urged for government intervention and public's tax money. Throughout this global recession Indian IT market has soughed their modest revenues and stable workforces. Finally the gloomy days have come for Indian IT market when companies are unable to provide huge jump in salary and promised remunerations those they had given in last 10 years. Until now all major firms have announced their appraisal processes but have also declared that there would be no wage hike whatsoever. Presumably, such "indictments" are causing aversion in employees who would have expected otherwise. Indeed, for these may years, appraisal process has been a "tool" for employee satisfaction, tool providing mandatory salary hikes (in most cases) or evident promotion or both, rather than just a blunt measure of competencies. Many potential employees have argued that current appraisal process does not qualify to them unless and until such process talks about "raise".
On other hand, companies, unable to induce new clients and more businesses due to global turmoil, are keener to increase their revenues or at least trying to maintain their revenues at same level as that was in last quarter. Apart from "no hike", companies are also opting out any possibilities of salary hike and of promotion - which could provide hike in pay because of higher incumbent - by clearly mentioning that "this year's" appraisal process are designed in order to provide more emphatic feedback on employees' performance rather than anything else. In few cases, human resources do not have any clear reason to define implication of this year's appraisal process; though, indirectly they are stigmatizing this year's vulnerable economic situation.
Whether market will recover from current situation by next year and whether IT Companies will revamp their lucrative rises again are disputable; however, it is possible that very soon Indian IT will also streamline its processes for salary hike and will maintain stringent policies for any rises and promotions further.
