The decision to postpone the promotions is attributed to the current economic uncertainties in the country. Consulting industryin particular a decline in client spending and a slowdown in the professional services sector. Earlier this year, Accenture revised its revenue forecast for fiscal year 2024, indicating the challenging economic conditions it faces.
There will be no salary increases for employees in India and Sri Lanka for fiscal year 2023
In October 2023, Accenture informed its employees in India and Sri Lanka that there would be no wage increases for fiscal year 2023 due to adverse macroeconomic factors. Ajay VijThe country’s CEO said in an internal email that while individual performance bonuses would continue to be distributed, they would be considerably lower than the previous year due to setbacks in the company’s performance.
The company has also postponed promotions for senior management until June 2024. “Given the backdrop of our performance, we will not be providing any base salary increase this year, except where required by law or where there has been a commitment in some critical skill areas,” Vij added.
Industry-wide impact
Accenture’s moves mirror those taken by other consulting firms such as McKinsey & Co., Ernst & Young and PricewaterhouseCoopers, all of which are struggling with the economic slowdown. While there has been a recent uptick in demand for AI and automation-related projects, it has not been enough to counter the broader pressures facing the industry.
These developments indicate that consulting firms are undergoing a period of adjustment as they face current economic challenges. The shift in promotion schedules and suspension of salary increases highlight the broader impact of the current economic climate on the professional services sector.
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