Indian IT out of the woods? Infosys, TCS send positive signals

NEW DELHI: The Indian IT sector may finally be showing some signs of recovery, after facing turbulence for a while. The major IT players are starting to inspire confidence in its workforce with some of their management decisions.
Recently, both Tata Consultancy Services (TCS) and Infosys, which are the first and second largest Indian IT company respectively, handed out handsome variable pay to their employees.Infosys has announced around 95 per cent of the variable to its workers while TCS declared 100 per cent.

In what was a big surprise to employees, Infosys gave out the highest level of payout in the past nine quarters. So, is it a signal then that all is well in the Indian IT sector?
Commenting on this, Sarabjit Kour Nangra, Angel Broking VP Research-IT, said that "the IT sector is expected to grow gradually with more focus towards the digital market.”
She added that “Infosys has found the correct person in Salil Parekh and this will boost the company's confidence in the future.”
Talking about TCS, she further said that the IT major, in terms of business, is “focusing more on the long term benefits rather than the short ones.”
How employees reacted:
"This is unusual and unexpected, especially in a weak quarter. We didn't get iPhones (under former CEO Vishal Sikka, the company gave 3,000 iPhones to top performers). But I think this is a great morale booster with a new CEO at the helm," said an Infosys employee on condition of anonymity.
Sharing similar views, one TCS employee also said the move is "rare and unexpected."
Less pay for CEO:
Infosys, which was under fire from its co-founders over the severance pay rise given to the top bosses, in a rare move announced less salary to the newly appointed CEO Salil Parekh than that of predecessor Vishal Sikka.

Digital-first:
Infosys chief Parekh said, "We are very clear in any case that the market has evolved and digital is a critical element of that market. Equally with regard to consulting in terms of focus, we see lot of buying in the business today."
TCS also expanded its relationship with British retailer Marks & Spencer (M&S) to enable it become a digital-first business.

Overseas situation:
In a relief for Indian techies, US authorities said last week that the Trump administration is not considering any proposal that would force H-1B visa holders to leave the country.

The announcement by the US Citizenship and Immigration Services (USCIS) came days after reports emerged that the Trump administration was considering tightening H-1B visa rules that could lead to deportation of 7,50,000 Indians. The reports had said it was mulling ending extensions for H-1B holders.