Economy News Notes:

Large IT companies have begun to implement marginal cuts in employees' variable pay, an indication of the economic challenges they foresee.
The report adds that variable compensation is 4-6% of revenues of tier-1 IT companies (Infosys, Wipro and TCS), and 20-30% of their offshore salary costs. The offshore salary stands between 18% and 27% of overall revenues.
Recent results of technology majors like Oracle, Accenture and Red Hat indicate decelerating demand for packaged software. This according to analysts will impact demand on the discretionary portfolio of Indian IT companies.
Variable pay is generally linked to the company, unit and personal performance. Over the last couple of years it has become a norm for IT companies to have a variable component of around 10-15% of total salary for junior to mid-management level employees and 20-35% for senior level employees.