The weakening of the US Dollar against the Rupee is hitting the IT industry very hard. If the situation continues, which is most likely then the IT industry will not be in a position to offer pay hike to its staff, at least not in the immediate future.

The industry observers say that the companies are in no position to offer pay hikes to retain staff or attract talent for the next two or three quarters. Many big companies have posted poor returns this quarter on account of the weakening of the US Dollar.